CASE STUDY

Production Planning and Execution (PP) Case Study

This case study explains an integrated production planning and execution process in detail and thus fosters a thorough understanding of each process step and underlying SAP functionality.

Product
SAP ERP G.B.I. Release 6.04

MOTIVATION
The data entry requirements in the production planning exercises (PP 1 through PP 6) were minimized because much of the data already existed in the SAP system. This stored data, known as master data, simplifies the processing of business transactions. Examples for this were material master data, bills of materials, and routings. In this case study, we will create consumption values for a finished product to plan and process a complete manufacturing cycle.

PREREQUISITES
Before you use this case study, you should be familiar with navigation in the SAP system. In order to successfully work through this case study, it is not necessary to have finished the PP exercises (PP 1 through PP 6). However, it is recommended.

Level
Undergraduate Graduate Beginner

Focus
Production Planning and Execution

NOTES
This case study uses the Global Bike Inc. (G.B.I.) data set, which has exclusively been created for SAP UA global curricula.

Authors
Bret Wagner Stefan Weidner

Version
2.01

SAP AG

CASE STUDY

Change Material Master Record

Task Prepare a material master record for Demand Planning.

Time 15 min

Short Description In order to plan GBIs deluxe touring bikes (black, silver and red) prepare their material master records by changing the MRP 3 view.

To change a materials MRP 3 view, follow the menu path:

Logistics Production Master Data Material Master Material Change Immediately

Menu path

In the Material field, find and select your red Deluxe Touring bike first. If you do not remember its material number, position your cursor in the Material field and click on the search icon or press F4. Make sure you are on the Material by Material Type tab. Select Material Type Finished Product (FERT) and enter *### in the Material field. Remember to replace ### by your three-digit number given by your instructor, e.g. *005 if your number is 005. Then, press Enter and select the red Deluxe Touring bike with a double click. When your material number (DXTR3###) is entered in the Material field, click on or press Enter. On the following screen, select MRP 3 (so that this line is highlighted).

F4 Finished Product *###

DXTR3###

MRP 3

Then, press Enter or click on

. The following screen will appear.

SAP AG

Page 2

CASE STUDY

Find and select the GBI manufacturing facility in Dallas (DL00). Then, enter its Finished Goods Stor. Location (FG00). Press Enter or click on

DL00 FG00

In the MRP 3 view, enter Strategy group 40 (Planning with final assembly), Consumption mode 1 (Backward consumption only) and [Link] per. 30.

40 1 30

Click on to save your changes to the red deluxe touring bike. Select OK and press Enter to acknowledge the following warning message if needed.

OK

The system informs you in the status bar that material DXTR3### has been changed successfully. Repeat the same procedure for the silver and the black deluxe touring bike material master. Start with the silver bike (DXTR2###), then modify the black bike (DXTR1###). Click on the exit icon to return to the SAP Easy Access screen.
DXTR2### DXTR1###

SAP AG

Page 3

CASE STUDY

Create Consumption Values for Finished Product

Task Create consumption values for a finished good.

Time 15 min

Short Description Create a forecasting view and associated consumption values that will permit forecasting of future consumption for our product.

To create consumption values, follow the menu path:

Logistics Production Master Data Material Master Material Create (Special) Finished Product

Menu path

In the Material field, find and select your black Deluxe Touring bike. If you do not remember its material number, position your cursor in the Material field and click on the search icon or press F4. Make sure you are on the Material by Material Type tab. Select Material Type Finished Product (FERT) and enter *### in the Material field. Remember to replace ### by your three-digit number given by your instructor, e.g. *005 if your number is 005. Then, press enter and select black Deluxe Touring bike with a double click. When your material number (DXTR1###) is entered in the Material field, select Industry sector Mechanical Engineering, click on or press Enter. On the following screen, select Forecasting (so that this line is highlighted) and make sure the indicator Create views selected is checked.

F4 Finished Product *###

DXTR1### Mechanical Engineering

Create views selected

Then, press Enter or click on

. The following screen will appear.

SAP AG

Page 4

CASE STUDY

Find and select the GBI manufacturing facility in Dallas (DL00). Then, press Enter or click on . Note the system message in the status bar which informs you that the bike material master record already exists and will now be extended with the Forecasting view. On the Forecasting tab, select Total consumption column, press on . If you do not see the .

DL00

Populate the Total consumption column with the following data (start with the actual period minus one month / current year. Current Year 12 113 11 103 10 105 9 112 8 105 7 98 6 95 5 105 4 100 3 100 2 102 1 109 Year Current Current Year - 1 Year 2 93 83 83 73 85 75 92 82 85 75 78 68 75 65 85 75 80 70 80 70 82 72 89 79 Current Year - 3 73 63 65 72 65 58 55 65 60 60 62 69

Enter data back 3 years as shown in the following graphic. Your table may differ due to a different current month and year.

SAP AG

Periods

Page 5

CASE STUDY

Click on

to save your entries. Then, click on

.
X 12 12 X

Again on the Forecasting tab, select Forecast model X (Seasonal trend model), Hist. period 60, Forecast periods 12, Periods per season 12, Initialization pds 12, and Initialization X (Initialization by system). Uncheck Reset automatically, check [Link], select Optimization level F (Fine), Alpha factor 0.20, Beta factor 0.10, Gamma factor 0.30, and Delta factor 0.30. Then, click on to save your modifications to the bike master record. to return to the SAP Easy Access screen.

60 12

Reset automatically [Link] F 0.20 0.10 0.30 0.30

Click on the exit icon

SAP AG

Page 6

CASE STUDY

Change Routing

Task Change a routing for a finished good. Short Description Change the routing for your black Deluxe Touring bike.

Time 15 min

After the operational steps are laid out, the components must be allocated to the individual operations. This is a progressive process where each operation builds off the materials that entered production in the previous operations. To change a routing, follow the menu path:
Logistics Production Master Data Routings Standard Routings Change

Component allocation

Menu path

If not already filled in, enter the material number for your black Deluxe Touring bike (DXTR1###). In the Plant field, enter GBIs Dallas plant number (DL00). Then, press Enter or click on .

DXTR1### DL00

Choose

and select the following materials.

Once you have selected the lines for the black touring frame (TRFR1###) and the touring seat kit (TRSK1###), choose . In the following screen, in the Oper./Act. field enter operation 0020 and press Enter. Back on the Material Component Overview screen, you see that now both components have been assigned to operation 0020.

TRFR1### TRSK1###

0020

SAP AG

Page 7

CASE STUDY

Repeat the same process for the other components and assign them to operations as shown below. Component TRHB1### (touring handle bar) TRWA1### (touring aluminum wheel assembly DGAM1### (derailleur gear assembly) CHAN1### (chain) BRKT1### (brake kit) PEDL1### (pedal assembly) WDOC1### (warranty document) PCKG1### (packaging) Operation 0030 0040 0040 0050 0060 0070 0100 0100
BRKT1### PEDL1### WDOC1### PCKG1### TRHB1### TRWA1### DGAM1### CHAN1###

Click on

and save your entries with

Click on the exit icon

to go back to the SAP Easy Access Menu.

SAP AG

Page 8

CASE STUDY

Display Product Group

Task Display a product group.

Time 5 min

Short Description Display the product group (product family) for all your Deluxe Touring bikes.

A product group (product family) supports high-level planning. This way, it is not necessary to delve into the minutia of creating planning forecasts for every material in the company. To display the deluxe touring bike product group, follow the menu path:
Logistics Production SOP Product Group Display

Product group

Menu path

In the Display Product Group: Initial Screen, in the Product group field find and select your group for deluxe touring bikes. After having pressed the search icon (or pressed F4), enter ###* in the Material description field. Remember to replace ### with your three-digit number, e.g. enter *009 if your number is 009.

###*

Then, press Enter or click on to display the search results. You should see five product groups already defined for your set of material master data (compare with the screen shown below).

Double-click on the line for deluxe touring bicycles to select the group.

SAP AG

Page 9

CASE STUDY

Now that the correct product group (PG-DXTR###) is filled in, make sure that Plant DL00 is entered. Then, press Enter to display the product group details.

PG-DXTR### DL00

On this screen you can see that this product group defines proportions for three different bikes: the black, silver and red deluxe touring bike. For the black bike a share of 40% will be considered and 30% for the silver and the red bikes each. Click on the exit icon to return to the SAP Easy Access screen.

SAP AG

Page 10

CASE STUDY

Create Sales and Operations Plan

Task Create a sales and operations plan for a product group.

Time 20 min

Short Description Create a 12-month sales and operations plan (SOP) for your product group.

A sales and operations plan (SOP) is a planning tool used to consolidate data for forecasting future sales and production levels as well as the methods needed to meet those requirements. In this task, our SOP will be based on historical consumption. To create an SOP, follow the menu path:
Logistics Production SOP Planning For Product Group Change

Sales and operations plan

Menu path

Make sure that Product group PG-DXTR### and Plant DL00 are entered. Then, select . Record the version number: In the system menu, select:
Edit Create sales plan Forecast

PG-DXTR### DL00

Select Period intervals, Forecast from current period/current year to previous period/next year, Historic Data from 01/three years ago to previous period/current year, Forecast execution Aut. model selection. , compare your screen with the one below. Before clicking on

Period intervals current period/current year previous period/next year 01/three years ago previous period/current yr. Aut. model selection

Click on
SAP AG

and continue through warning messages if needed.

Page 11

CASE STUDY The system selected Trend and season. Click on (Interactive Graphics). screen, choose . In the next

Click on

to go back to the results screen.

You can see that the system tested and found Seasonal and Trend tendencies in the past consumption data and has applied a Seasonal Trend Model. Click on (Copy and Save). The sales forecast is copied into our Sales and Operations Plan. As Target days supply enter 5 for each forecasted period.
5

SAP AG

Page 12

CASE STUDY

In the system menu, select:

Edit Create productn plan Synchronous to sales

Note the change in the Production and in the Stock level lines. The production plan is created to match the sales forecast. In the system menu, select
Edit Create productn plan Target days supply

Note the impact on the production plan and stock levels. Production levels are generated to match the sales plus produce enough to put into stock to meet the target days of supply specifications. Review the Planning Table (your numbers may be different then this table).

Click on table.

to review a graphic representation of your planning

You may click on

to display a legend for this graphic.

SAP AG

Page 13

CASE STUDY

Click on

to go back and save with

Click on the exit icon

to return to the SAP Easy Access screen.

SAP AG

Page 14

CASE STUDY

Transfer SOP to Demand Management

Task Transfer SOP to Demand Management. Short Description Transfer the Sales and Operations Plan to Demand Management.

Time 10 min

Demand Management is the tool used to disaggregate planning data from high-level plans down to the detailed planning level. For this task, planning for the Dexluxe Touring Product Group will be broken down into the individual components that belong to this group. To transfer the SOP to Demand Management, follow the menu path:
Logistics Production SOP Disaggregation Transfer PG to Demand Planning

Demand Management

Menu path

Enter Product group PG-DXTR###, Plant DL00, and the version saved in the previous task (A00).

PG-DXTR### DL00 A00

Select [Link] for mat. or PG members as proportion of PG and Active. Then, deselect the Invisible Transfer indicator to present the disaggregation results on another screen allowing the planner to modify the results before saving them manually to Demand Management. Select and examine the Planned Independent Requirements generated for DXTR1###.

[Link] for mat. or PG members as prop. of PG Active Invisible Transfer

DXTR1###

SAP AG

Page 15

CASE STUDY

Then, click on

to save.
DXTR2###

Examine the Planned Independent Requirements generated for DXTR2### and save them with .

Finally, examine the requirements for DXTR3### and save them with

DXTR3###

Note: DXTR1### makes up 40%, DXTR2### makes up 30% and DXTR3### another 30% of the production plan created in your Sales and Operations Plan. How is this derived?

Click on the exit icon

to return to the SAP Easy Access screen.

SAP AG

Page 16

CASE STUDY

Review Demand Management

Task Review the requirements for a product group.

Time 10 min

Short Description Review the requirements for the product group to ensure that there are production requirements for the individual production items.

To review planned requirements, follow the menu path:

Logistics Production Production Planning Demand Management Planned Independent Requirements Display

Menu path

Select the Product group indicator, enter Product group PG-DXTR###, Plant DL00, and select (Enter). On the Table tab, review the Planned Independent Requirements for the Deluxe Touring bike product group by material.

Product group PG-DXTR### DL00

On the Sched. lines tab, review the requirement dates, planned quantities, values, and total planned quantities.

SAP AG

Page 17

CASE STUDY

Select

(Next item) to move to the next material. to return to the SAP Easy Access screen.

Click on the exit icon

SAP AG

Page 18

CASE STUDY

Run MPS with MRP

Task Run Master Production Scheduling (MPS).

Time 10 min

Short Description Run Master Production Scheduling (MPS) to generate a series of planned orders that satisfy the requirements from SOP and demand management. Concurrently with MPS, the MRP materials will be processed leading to the generation of planned orders for dependent requirements that have been created by the BOM explosion process.

To run Master Production Scheduling, follow the menu path:

Logistics Production Production Planning MPS MPS Total Planning Online

Menu path

Enter Plant DL00, Processing key NETCH, select 2 (Purchase requisition in opening period), 3 (Schedule lines), 1 (MRP list), 1 (Adapt planning data (normal mode)), and 1 (Determination of Basic Dates for Planned). Then, select Process MRP materials and Display list.

DL00 NETCH 2 3 1 1 1 Process MRP materials Display list

Select (Enter). A warning message will appear asking you to check input parameters. Press Enter to confirm and bypass the warning message. To start the planning run, click on details from the List Display. (Continue) and review the planning

SAP AG

Page 19

CASE STUDY Note: Your list may look different. However, you should find your black deluxe touring bike (DXTR1###) in the list.
DXTR1###

Click on the exit icon

twice to return to the SAP Easy Access screen.

SAP AG

Page 20

CASE STUDY

Review Stock/Requirements List

Task Review the Stock/Requirements List.

Time 10 min

Short Description Review the Stock/Requirements List for your deluxe touring bikes.

The Stock/Requirements List is a dynamic list which dynamically changes whenever a transaction occurs using the given material. Display and review the Stock/Requirements List for all materials in the deluxe touring bike product group on hand and the demand that exists against these products. The report shows that there is no stock and therefore nothing is available for use at this time. To review the Stock/Requirements List, follow the menu path:
Logistics Production Production Planning MPS Evaluations Stock/Reqmts List

Stock/Requirements List

Menu path

On the Collective access tab, enter Plant DL00, select and enter Product group PG-DXTR###, and click on (Enter). This will allow you to see the status of all products within your planning group. Select (Highlight) the three materials that make up your product group.

DL00 Product group PG-DXTR###

Then, select

and

SAP AG

Page 21

CASE STUDY

Select (Switch to Period Totals). This will allow you to see the planned independent requirements, planned receipts, and ATP quantities based on time; days, weeks, or months.

Select

to go back to the individual lines. (Element

To view the details of the first planned order (PldOrd), select Details).

Select

(Pegged Requirements).

You can see that this planned order is to fulfill our Safety Stock and the first planned independent requirement that was created when we disaggregated our SOP.
SAP AG Page 22

CASE STUDY Select (Graphic) to see a graphical view of this information. twice to return to the SAP Easy Access screen.

Click on the exit icon

SAP AG

Page 23

CASE STUDY

Convert Planned Order into Production Order

Task Convert a planned order into a production order.

Time 10 min

Short Description Convert a planned order generated in the MPS/MRP run to a production order. The stock requirements list displays the suggested planned orders from the MPS run.

To convert planned orders into production orders, follow the menu path:
Logistics Production MRP Evaluations Stock/Reqmts List

Menu path

Enter Material DXTR1###, Plant DL00, and click on double-click on the second planned order.

(Enter). Then,

DXTR1### DL00

In the Additional Data screen, click on production order).

(Convert planned order to

Determine the status of your order by clicking on

. What does this mean?

SAP AG

Page 24

CASE STUDY Note: When you converted the planned order to a production order scheduling takes place, an availability check was automatically carried out and a reservation was placed on the materials specified within the bill of materials. The order was also automatically released when the production order was created. Click on with . to go back to the header screen and save your production order

Note: When you save the production order the system will automatically calculate the planned costs for the production order and the production order is given a number. Make sure you record your production order number. Select (Refresh) to refresh the Stock/Requirements List. In the MRP Element column the planned order PldOrd that you selected should now have changed into a production order PrdOrd.

Production order number

SAP AG

Page 25

CASE STUDY

Receive Goods in Inventory

Task Receive goods in the Dallas plant.

Time 10 min

Short Description Receive enough goods in the Dallas storage locations to start the production process.

Usually, at this point the purchasing department in Dallas would take over and procure enough raw materials from vendors to fill the inventory so that the production process can be initiated. In this case study, we are bypassing this procurement process (this process is explained in the MM unit in detail). Because the inventory for all DXTR1### components is empty, we will assume that we find 100 pieces each in the storage location. To receive goods in the inventory, follow the menu path:
Logistics Materials Management Inventory Management Goods Movements Goods Receipt Other

Goods receipt

Menu path

Make sure you click on Other and not on Other (MIGO). This should produce the following screen.

Enter today as Document and Posting Date, Movement Type 561 (Receipt per initial entry of stock balances into unr.-use), Plant DL00, and leave Storage Location blank. Then, press Enter or click on . In the Enter Other Goods Receipts: New Item screen, enter the following data. Each one of these ten materials are components that you later on need in your production order. Note that all materials are stored in the raw materials storage location in Dallas except the touring wheel assembly (first component in the list) which is a semi-finished good.

today today 561 DL00

SAP AG

Page 26

CASE STUDY Material

TRWA1### (Touring Aluminum Wheel Assembly) TRFR1### (Touring Frame-Black) DGAM1### (Derailleur Gear Assembly) TRSK1### (Touring Seat Kit) TRHB1### (Touring Handle Bar) PEDL1### (Pedal Assembly) CHAN1### (Chain) BRKT1### (Brake Kit) WDOC1### (Warranty Document) PCKG1### (Packaging)

Quantity SLoc
100 100 100 100 100 100 100 100 100 100 SF00 RM00 RM00 RM00 RM00 RM00 RM00 RM00 RM00 RM00
TRWA1### TRFR1### DGAM1### TRSK1### TRHB1### PEDL1### CHAN1### BRKT1### WDOC1### PCKG1###

Before pressing Enter compare your screen with the screenshot shown below. Remember that your material numbers are different.

After pressing Enter you should see the following screen.

Save your goods receipt with and record the material document number. Then, click on the exit icon to return to the SAP Easy Access screen.

Material document number

SAP AG

Page 27

CASE STUDY

Issue Goods to Production Order

Task Issue goods to a production order.

Time 10 min

Short Description Now that all necessary components are on stock issue them to your production order in precise quantity.

The goods issue process is fully defined in the production order, BOM, and routing. The quantities and the materials are reserved for this specific production order, will be withdrawn with reference to the order number, and will be used to assign actual costs to the production order for managerial accounting purposes. To issue goods to a production order, follow the menu path:
Logistics Production Shop Floor Control Goods Movements Goods Issue

Goods issue

Menu path

This should produce the following screen.

Enter today as Document and Posting Date, Movement Type 261 (Consumption for order from warehouse), Plant DL00, and leave Storage Location blank. Then, click on the button. Enter your production order number from two tasks back. If you have not written down your production order number you can find it in the system. In order to do so, in the Order field press F4 or click on the search icon . In the Order Number (1) screen, use the icon on the far right to display a list of all tabs. Please select the Production orders using the info system tab. On this tab, enter your material DXTR1### in the Material field and click on . Double-click on the result row to adopt your production order number into the initial screen. Once you have found and entered your production order number, click on to continue.
SAP AG

today today 261 DL00

Production order number

F4

DXTR1###

Page 28

CASE STUDY An itemized list will appear. It lists all the materials and their respective quantities that need to be issued to your order. You need to tell the system what Storage Location the materials should be withdrawn from. For the wheel assembly (TRWA1###), enter SF00 (Semi-finished goods) and for all other materials RM00 (Raw materials) in the SLoc fields. Before pressing Enter compare your screen with the one shown below.

SF00 RM00

Click on the button. A series of screens will appars asking you to copy in the requirements for each of the dependent requirements. Click on to accept the details for each material. Finally, on the Enter Goods Issue: Overview screen you will see all of the goods issue quantities for each of the materials.

Click on

(Post) and record the material document number. to return to the SAP Easy Access screen.

Material document number

Click on the exit icon

SAP AG

Page 29

CASE STUDY

Review Production Order Status and Documents

Task Review the production order status and related documents.

Time 10 min

Short Description Review the current production order with respect to the status of the order and any documents that have been created in the background while processing the order.

To display the production order, follow the menu path:

Logistics Production Shop Floor Control Order Display

Menu path

Enter the number of your production order. If you have not written down your production order number you can find it in the system. In order to do so, in the Order field press F4 or click on the search icon . In the Order Number (1) screen, use the icon on the far right to display a list of all tabs. Please select the Production orders using the info system tab. On this tab, enter your material DXTR1### in the Material field and click on . Double-click on the result row to adopt your production order number into the initial screen. When your production order number is entered, click on . Note that the order status has changed and review it by clicking on again.

Production order number

F4

DXTR1###

You did a goods issue to the production order in the last task. Now, you want to review the cost assigned to the order, the material document, and the corresponding accounting document. In order to do so, click on the system menu select:
Goto Costs Analysis

to go back to the header screen and then in

SAP AG

Page 30

CASE STUDY

Here you can see the costs that were assigned to the production order from our goods issue. Double-click on any of the line items. Then, single-click on the line item . The collective material document with your number and select should now be displayed; please confirm:

On the [Link] tab, select document.

and double-click on Accounting

You should now see a list of all G/L accounts that were posted to automatically when you did your goods issue to the production order.

Click on list.

to go back and select

to close the Accounting documents

SAP AG

Page 31

CASE STUDY Click on the exit icon twice and click on Yes to acknowledge the system warning message shown below if needed.
Yes

Click on the exit icon Access menu.

three times again to go back to the SAP Easy

SAP AG

Page 32

CASE STUDY

Confirm Production Completion

Task Confirm production order completion. Short Description Confirm completion for your production order.

Time 10 min

When the assembly has been completed for the current production order, we need to confirm that certain procedures and activities have been completed and record the quantity of the end product that has been manufactured. To confirm production completion, follow the menu path:
Logistics Production Shop Floor Control Confirmation Enter For Order

Production completion

Menu path

Enter your production order number and click on

Production order number Final Confirm. Clear Reservation amount

Select Final Confirm. and Clear Reservation. In the Yield to conf. field, enter the amount of bikes you were supposed to produce for this order. Remember that your amount might be different from the screen below.

Then, change the Execution start to 1 hour earlier than the default time.

1 hour earlier

Click on

and save your entries with

SAP AG

Page 33

CASE STUDY Note: When the confirmation is saved, labor costs for the order are calculated automatically. The quantity yield also establishes the parameters for the goods receipt into Inventory. Click on the exit icon to return to the SAP Easy Access screen.

SAP AG

Page 34

CASE STUDY

Receive Goods from Production Order

Task Post a goods receipt from production order. Short Description Post a goods receipt from your production order.

Time 15 min

Receive the completed products into finished goods inventory. Check the quantity purposed against the quantity specified in the production order and the quantity specified during confirmation. If there are any discrepancies, the system will decide if an error or warning message should be generated depending upon the deviation identified. To post a goods receipt, follow the menu path:
Logistics Production Shop Floor Control Goods Movements Goods Receipt

Goods receipt

Menu path

This produces the following screen.

Enter Movement Type 101 (Goods receipt for order to warehouse), your production order number, Plant DL00, Stor. Location FG00 (Finished . Goods), and select

101 Production order number DL00 FG00

SAP AG

Page 35

CASE STUDY

Ensure that the quantity to be placed into inventory and the storage location are correct. Then, click on to accept the details for the new bikes received from production.

In the overview screen, review the item to ensure that all the data is correct. Movement Type 101 (goods receipt into Inventory) Storage Location FG00 (Inventory) Quantity should equal the amount that you confirmed in the previous task
Material document number

Click on to post the goods receipt. When you save this material document the actual value of the material produced was entered into the production order. Record the material document number. Click on the exit icon to return to the SAP Easy Access screen.

SAP AG

Page 36

CASE STUDY

Review Costs Assigned to Production Order

Task Review costs assigned to your production order.

Time 5 min

Short Description Display and review the costs that have been assigned to your production order.

To display costs assigned, follow the menu path:

Logistics Production Shop Floor Control Order Display

Menu path

Enter your production order number, and click on In the system menu, select:
Goto Costs Analysis

(Enter).

Production order number

Now that the finished products have been received in the Inventory, the Manufacturing Output Settlement Variance has been added. How is this figure calculated by the system?

Click on the exit icon

to return to the SAP Easy Access screen.

SAP AG

Page 37

CASE STUDY

Settle Costs of Production Order

Task Settle costs of your production order.

Time 20 min

Short Description Settle the costs of your production order. The costs are temporarily captured in the production order and they need to be assigned to an appropriate cost object. Compare the actual costs to the planned costs to identify any deviations or potential problems in this regard.

To settle costs of a production order, follow the menu path:

Logistics Production Shop Floor Control Period-End Closing Settlement Individual Processing

Menu path

If you have to input the Controlling Area, enter NA00, and click on

NA00

Enter your production order number, the current month as Settlement period (e.g. 007 for July), the current month as Posting period, and the current year as Fiscal year. Make sure that Test Run is selected. Then, click on (Execute).

Production order number current month current month current year Test Run

SAP AG

Page 38

CASE STUDY Click on (Detail lists). In the system menu, choose:

Actual/Plan/Variance

Environments Report

Then, double-click on Actual/Plan/Variance to select the report.

Because no cost planning has been taking place before the production order was executed, the variance between actual and plan costs equals the actual costs. Click on to go back. Then, select and click on twice.
Yes Test Run Actual/Plan/Variance

Deselect Test Run and execute again with . Click on (Detail lists) and select (Report). Choose report Actual/Plan/Variance.

SAP AG

Page 39

CASE STUDY Note: The manufacturing output settlement ist higher than the consumption expenses for raw materials and semi-finished goods? Review and explain the expenses and the settlements of your production order in detail. How is the balance derived?

Click on , choose SAP Easy Access screen.

and click on

again to return to the

Yes

SAP AG

Page 40