Demand flow from the Sales order to production – MD04 – Schedule line / Requirement type

Introduction

Hi All,

As a Production guys we must know that how the demand will flow from to Production. Most of the time we will create the material with strategy 20 and 40, and then we will create a sales order and then we will run MRP to create Planned order.

Some configurations are working in background to create the planned orders. We will see the same in this blog

Main Part

First we will see a sample scenario in which the demand is transmitted from sales order.

I have created one sales order with item category TAN.

Here

The schedule line category is CP – MRP &

The system finds the schedule line category CP and item category TAN because the item category group was set to NORM .

The requirement type is KE

The system finds the requirements type KE (under the Procurement type tab title on the Sales Order screen ) because the strategy group has been set to 20.

The demand is replicated in MD04

Overview

Two configuration will define that sales order to be considered for MRP

1. Requirement type in Sales order
2. Schedule line category in Sales order

Requirement class (OVZG) > Requirement type (against Requirement class) (OVZH) > Strategy Group (OPPT) > Strategy (OPPS) >Material (MM02)

or

Requirement class (OVZG) > Requirement type (against Requirement class) (OVZH) > Maintain Item category (VOV7) >  Assignments of Requirement type to transaction ( against item category and MRP Type) (OVZI) > Item category Group (OVAW) > Assign Item Categories (Against sales order type and item category group)  (VOV4) > Material (MM02)

Schedule line category (VOV6) > Item category (VOV5) > Item category Group (OVAW) > Material (MM02)

Configurations 1:

1. Requirement type in Sales order

OVZG – Requirement Class

Requirements classes control the creation of planned independent requirements or sales orders and customer requirements.

Requirement type will be linked to material as below

The requirement Class is assigned to requirement type which in turns is assigned to Strategy which in turn is assigned to Strategy Group. This strategy group is assigned to material through Material master.

The following is determined by the requirements class,

• the consumption of independent requirements by sales orders
• how warehouse stock is taken into account (net or gross requirements planning)
• inventory management and cost allocation (make-to-order or make-to-stock production)
• the release of the planned order (planning without final assembly)
• requirements distribution (configuration)
• MRP to be planned or only displayed or not planned

OVZH – Requirement Types

Requirement type is only description but it is contend of requirement classes they control the creation and execution of PIR, Sale Order & Stock consumption and decides whether the “transfer of requirement”, “availability check”, etc. needs to be done for the Sales order.

One or more requirements types can be allocated to the requirements class

If you see the strategy 20 you will see the requirement class 40 is automatically fetched if we maintain the requirement type KE is assigned to it.

In turns the strategy 20 will be assigned to the material in MRP 3 view.

So this will decide weather the order to be considered for MPR or not and above list mentioned in Requirement class.

OVZI – Assignment of Requirement types to transaction

Configuration 2:

      2. Schedule line category in Sales order

The Schedule line will be linked to material as below.

The Schedule line is assigned to Item category which in turns is assigned to Item category Group. This Item category Group is assigned to material through Material master.

VOV6 – Maintain schedule line categories 

The categorization of schedule line majorly varies as per the item category of a corresponding item and the material requirement planning MRP. This is defined in the material master record.

You can define different schedule line categories as per the sales document type and item category. The various control elements related to general data and shipping data are used for categorizing schedule lines.

Inquiry −

• No delivery of an item.
• No availability check.
• Information purpose.

Quotation −

• No Delivery.
• No Movement.

Order −

• Schedule line is suitable for delivery.
• Movement Type 601.

Return −

• Schedule line is suitable for delivery.
• Movement Type 651.

VOV7 – Maintain Item Category

An item category is used to define if an item is suitable for billing or pricing. It defines the additional control functions for a sales document.

VOV5 – Assign Schedule Line Categories

The system finds the schedule line category CP and item category TAN because the item category group was set to NORM .

OVAW – Item category groups

Item category groups can be maintained/ Defined using this node.

VOV4 – Assign Item Categories

Here One or more Item categories can be assigned to the item category groups

At last we have to assign the item category group to our material.

So now the schedule line and requirement type will be mapped to sales order via the NORM item category group.

Requirement Type will define whether the sales order to be considered for MRP or not and much more

Schedule Line will decide whether the delivery to consume the sales order or not

Check these two configurations if your sales order is not creating the planned order in addition to other parameters.

Conclusion.

I hope this may help you on knowing the Demand flow from sales to production

Would like you guys to see more relevant things using the link:

https://blogs.sap.com/2014/05/11/make-to-order-strategies-strategy-20/