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Former Member

Another feature within SAP MRP planning is the creation of purchase requisitions directly from the planning run.  This option for your planning run can automate your procurement process be skipping the manual planned order conversions altogether.

Your available options are create purchase requisitions for the total planning horizon, create planned orders for the total planning horizon which are manually converted into purchase requisitions at a later date, or create purchase requisitions within the opening period and planned orders outside the opening period.

When you are deciding to utilize this feature, here are some benefits and drawbacks to consider for each option:

 

1 - Purchase requisitions:

  • Benefits:
    • Bypasses need to train procurement personnel to use the MRP
      transactions such as MD04 and MD16.
    • All purchase requisitions can be viewed for long term purchase
      agreements using procurement transactions.
    • If left unchanged, material planning may update or delete any MRP
      planned purchase requisitions.
  • Drawbacks:
    • If the lot sizing is not finely tuned, too many or too little
      purchase requisitions created may cause additional work for procurement.
    • Bypassing the stock requirements list for procurement to review
      the requirement/replenishment situation may result in improper procurement
      quantities and/or dates.
    • Procurement personnel may create purchase orders from purchase
      requisitions too far in advance.

                2 - Purchase requisitions in opening period:

  • Benefits:
    • Bypasses need to train procurement personnel to use the MRP
      transactions such as MD04 and MD16.
    • Only purchase requisitions needed in the near term are generated,
      which bypasses the need and overhead of converting from planned orders.
    • If left unchanged, material planning may update or delete any MRP
      planned purchase requisitions.
  • Drawbacks:
    • If the lot sizing is not finely tuned, too many or too little
      purchase requisitions created within the opening period may cause additional
      work for procurement.
    • Bypassing the stock requirements list for procurement to review
      the requirement/replenishment situation may result in improper procurement
      quantities and/or dates.
    • Procurement personnel may not see enough of a replenishment
      horizon to negotiate better terms for purchase orders.

                3 - Planned orders:

  • Benefits:
    • Procurement process cannot occur until conversions to purchase
      requisitions are made.
    • If left unchanged, material planning may update or delete any MRP
      planned orders automatically.
    • Requires manual intervention to analyze and determine if planned
      replenishments are optimal.
  • Drawbacks:
    • Requires additional training for procurement personnel to use the
      MRP transactions such as MD04 and MD16.
    • Procurement process cycle time is longer as conversions to
      purchase requisitions are necessary.

 

Now some may debate that some drawbacks may be benefits or vice versa, or that some are neither.  Additional benefits and drawbacks may also exist as well.  It is the explanation of the setting and its comparison to the business that will best determine how to utilize this function for any given organization.  No one selection setting is going to be best practice until the planning and procurement organizations determine what is the best practice for their business.

A final consideration:  If the material being planned has an MRP group assignment with a particular creation indicator for Create Purchase Requisitions, then this material will be planned according to that indicator.  Ensure the business understands if the MRP Group has this setting as the knowledge behind this configuration needs to be shown to your material master support group.

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