Classification - Object Dependency Procedure for Material Class

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SAP SD - Handling Incomplete Sales Documents

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SD Batch Determination and Quality Certificate

 

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Question no 4009 : Splitting requirement quantity to Supplier or Production Version based on the Quota

In SAP MRP Planning as at ECC6 EhP8, which of the following Lot Size key is recommended to always split the requirements between Suppliers or Production Versions based on the Quota entered for the Supplier or Production Versions in the Quota Arrangement ?

(only one answer)

A. EX
B. ES
C. FX
D. FS
E. SP
.

Answer: B

"ES" Lot for Lot with Split

The same functionality is available as in the current S/4HANA2023 version.

Q&A in Class (2024-07-17) S4220

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Question: For participants who are new to the MRP techniques! 

Answer: Material requirements planning (MRP) is a system for calculating the materials and components needed to manufacture a product, and it all started in the 1960s. Many software started with the MRP system with integrations of Logistics and Finance for an End-to-End process, AND it is later in the 1980s-1990s that MRPII and later ERP with infusion of Capacity and other business components into an Enterprise Solution. 

As in the past, MRP software vendors today are taking advantage of new technologies to improve their products and offer more capabilities to users. Foremost on the list is the application of machine learning and artificial intelligence (AI) in advanced planning processes to allow the systems to develop even better plans and schedules. Machine learning-enabled planning systems continually monitor conditions and activities to develop more precise models on cause and effect – so that its future recommendations are more comprehensive, more precise, and more effective.

click link to various open knowledge on MRP in Web:

https://ocw.mit.edu/courses/2-854-introduction-to-manufacturing-systems-fall-2016/

https://eprints.gla.ac.uk/theOriginof-MRP/

https://learning.sap.com/learning-journeys/implement-sap-s-4hana-manufacturing/

https://www.youtube.com/DependentDemand_&_MaterialsRequirementPlanning_(MRP)Overview/

click link to check an introduction to the Mechanics of MRP:
https://froggysap/SAP_MRP_Mechanics(1)
https://froggysap/SAP_MRP_Mechanics(2)

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Question: in MRP 1 view's Assembly Scrap Factor, what is the purpose?

Answer: Scrap Factors are used to represent "wastage" or "handling errors" or "production problems" resulting in component or assembly wastage. The various Scrap Factors can be setup in MRP1, MRP4, BOM Component Detail or Operation Detail; all uses to increase the Quantity of Procurement (internal or external) for Assembly or Components to cater for possible wastages. The settings are also used for Cost Estimates for the Assembly and Component. 

There are 4 scrap factors:

• Assembly Scrap Factor in Material Master MRP 1 view
• Component Scrap Factor in Material Master MRP4 view
• Operation Scrap Factor in Routing Operation
• Net ID for Operation/Component Scrap Factor in BOM Component Detail

click link to check the demo:
https://froggysap.blogspot.com/2019/10/set-scrap-factors-in-production.html

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Question: What is the use of the Backflushing indicator in the Material Master MRP2 view?

Answer: Backflushing means at the point of Goods Receipt of Production Order, the system will also perform Goods Issues at the same time; this simultaneous GR and GI is called Backflushing.

MRP 2 view in the Material Master can be set with either "Always Backflusing" or "Depending of Backflushing indicator in the Work Center".

click link to check a demo of Staging and Backflush with PP-EWM integration:

https://froggysap.blogspot.com/2022/09/sap-scm-ewm-execute-production-supply.html

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Question: Explain the use of Co-Products in the MRP2 view? 

In MRP 2 view, there is an indicator for Co-Product, we also expect for Material (Assembly or Component) with this indicator to be setup with "Joint Production" so that the Costing of Material, Labor and Overhead can be absorbed separately into the Primary Product and the Co-Product to share to costs between them. By-Products are also assigned as a Component to the Primary Product, plus a Negative indicator to signal GR for the Co-Product at time of Production Confirmation for the Primary Product. 

click link to view the presentation of Co-Products in the Production Order:
https://froggysap.blogspot.com/2019/08/co-products-for-production-orders.html

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Question: Explain the formula in SAP on the calculations of ROP and Safety Stocks.

Answer: Using an appropriate MRP Type, eg: is Standard SAP MRP Type "V2" which is set with "ROP" and "SS" auto calculation, with Consumption History recorded for the Material; it is then possible to use Forecasting Run to derive the update the Material Master with a caculated Re-Order Point and Safety Stock numbers. 

click to google drive for the calculation step for ROP and SS in SAP:

https://docs.google.com/presentation/reorderpoint_safetystock_calculation/

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Question: What is the purpose of the Takt Time indicator in the MRP 1 view of the Material Master ? 

Answer: The Takt time is used in conjunction of the Lot Size Key with either Forward (+) or Backward (-) Overlapping, to allow MRP run to create a "staggered" Qty of delivery from the Supplier instead of a Single Qty delivery. Some of the reason for this is Warehouse capacity or Production do not required ALL the Materials to be delivered on ONE Day as the Production is also spread to multiple days. 

Notice in the above, the Takt time is 1 day with Lot Size key "ZF" ("-" indicating Backward Overlap) plus a Fixed Lot Size of 50. Note in the 2nd slide that the Requirement 100 is split into 2 Planned Orders each of 50 due to the Fixed Lot Size but one of the Planned Order's expected delivery is backward 1 day earlier DUE to the Takt Time of 1 day plus the Backward Overlapping setting. 

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Question: To show the setup of processing steps for Planning at Sub-Assembly level Strategy "70".

Answer: This SAP Planning Strategy "70" is particularly useful when there are multiple (many) variants of Finished Goods that are produced using Common Sub-Assemblies. Due to too many variants, the Forecast (PIR) may not be possible at the Finished Goods level and the Strategy "70" to be assigned to the Sub-Assembly level will allow the PIR to be created for the Common Sub-Assembly level.

In SAP, there are 2 Planning Strategies for the Su-Assembly level ("70" for MTS and "74" for MTO). BUT, for Strategy "70", it will support Finished Goods with  Strategy MTO or MTS. You can see how this works in the Blog Posts below.

click to google drive for the calculation step for ROP and SS in SAP:
https://docs.google.com/presentation/strategy70/

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Question: PIR's "Regular Supplier", Source List in S/4HANA with the new in S/4's PIR's "Auto Sourcing". 

Answer: The "Regular Vendor/Supplier" indicator was introduced to the Info Record in SAP R/4 version 4.0 to be used without a Source List so that Source Determination at Purchase Requisition can be done without a Source List. In this case, as long as only one of the PIR (Info Record) same Material but different Vendor AND only ONE PIR has the "Regular Vendor", this PIR will be selected at Source Determination for PR creation at ME51N. (this is done without a Source List". 

In S/4HANA, due to Simplification project, SAP introduce the "Auto Sourcing" indicator in the Info Record allowing Automatic Source Determination at MRP run AND again negating the need for a Source List. This is possible as long as only ONE Info Record for SAME Material Different Vendor has the "Auto Sourcing" indicator. 

HOWEVER, it is important to note that the SOURCE LIST is NOT no longer useful. FOR, if the USER creates a SOURCE LIST, then it will still be RESPECTED for Source Determination at all situations like Source Determination for PR creation as well Source Determination at MRP run. For example, if the "Auto Sourcing" or "Regular Vendor" is set at the Info Record BUT the Source List was SET to "BLOCK" the Vendor; the associated Vendor is NOT selected at Source Determination. 

click link for a demonstration of Regular Vendor in S/4HANA system
https://docs.google.com/presentation/regular_vendor/

click link for a demonstration of Regular Vendor and Auto Sourcing in S/4HANA system

https://docs.google.com/presentation/regularvendor_autosourcing/

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Question: Predictive MRP explain again.

Answer: in ECC, simulation can be done only via LTP (Long Term Planning) which can ready PIR of either Active or non-Active Version in an LTP scenario. The classic LTP allows the Planner to simulated the PIR's capacity situation for Finished Products and Sub-Assemblies. Mid or Longer Term Purchasing Plan can be written into Purchasing Info System for Procurement Negotiations. When the non-Active PIR in simulation in LTP is found to be accepted, then it can be activated. 

pMRP is a new functionality available only via FIORI App by SAP in S/4HANA to help the user to identify potential capacity issues and to evaluate possible solutions as early as possible based on a simplified requirements plan using a simplified material requirements algorithm.

 

click link to demonstration of SAP Predictive MRP

https://froggysap.blogspot.com/2024/07/sap-s4-pp-pmrp-introduction.html

check the FIORI App in the FIORI Library in the following: 

https://fioriappslibrary.hana.ondemand.com/Schedule pMRP Simulation Creation (App ID F3968)/

https://fioriappslibrary.hana.ondemand.com/Process pMRP Simulations (App ID F3934)

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Question: to explain DDMRP concept again.

click here to view the basic logic of DDMRP:
https://docs.google.com/presentation/DDMRP_Mechanics/

click here to look at an example of SAP's DDMRP:

https://docs.google.com/presentation/SAP-DDMRP-Demo/

click the following to Web resource on DDMRP:

https://www.patrickrigoni.ch/material-requirement-planning/difference-between-ddmrp-mrp/

https://www.demanddriveninstitute.com/ddmrp

https://www.sap.com/sea/products/scm/integrated-business-planning/what-is-supply-chain-planning/ddmrp.html

https://demanddriventech.com/ddmrp-demand-driven-material-requirements-planning/

https://www.gartner.com/en/information-technology/glossary/demand-driven-material-requirements-planning-ddmrp

https://www.demanddrivenmrp.com/

https://demanddriventech.com/blog/what-is-ddmrp/

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Question: Show demo examples of SAP Quota Arrangement applications in SAP.

Answer: The concepts and calculations of the Quota Arrangement has been explained in class which includes using the Lot Size key "ES" for Splitting or Lot Size key "EX" (without Split) and using the formula below to derive each Source Determination to fairly allocate to the Source based on the Quota:

Quota Rating = (Allocated Qty + Quota Based Qty) / Quota

Rule 1: if Quota Rating is not the same then select the Source with the Lower/Lowest Quota Rating.

Rule 2: if Quota Rating are the same for all the source then select Source that is set with the Higher Quota.

Quota Arrangement feature has been carried forward to the S/4HANA system except that the MRP2 view no longer provide the Quota Arrangement Usage field to activate the use of the Quota Arrangement. This is due to the Simplification initiative, and in S/4 when the Quota Arrangement is created, it is now Active for Source Determination whether in MRP run of Source Determination at PR creation (ie: no longer need to activate Quota Arrangement usage in the MRP2 view). 

click below to see examples of applications of SAP Quota Arrangement:
https://froggysap.blogspot.com/2014/07/mrp-quota-arrangement-max-lotsize-1x.html
https://froggysap.blogspot.com/2014/01/mrp-quota-arrangement-min-lot-size.html
https://froggysap.blogspot.com/2016/07/material-management-supplier-capacity.html
https://froggysap.blogspot.com/2016/04/pp-rem-quota-arrangement-line-load-via.html

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Distributed EWM integration to ERP - Setup Production Staging in ERP and EWM

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Distributed Extended Warehouse Management - ERP-EWM Integration Check List

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SAP MM - Advanced Return Purchase Order Basic Process Flow Example

 

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SAP S/4 TM - Freight Order Simulation Sequence Type of Stages using "Defined and Linear" vs "Star-Shaped"

 

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SAP S/4 TM - Freight Settlement Calculations Rates Master Data

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Question no 4008 : Schedule Line Category determination

In SAP Sales and Distribution in ECC6 EhP8, which of the following are correct factors to determine Schedule Line category ?

(only one answer)

A. Item Category and MRP Group.
B. Material Type and MRP Type.
C. Item Category and MRP Type.
D. Order Type, Item Category and MRP Type.
E. Order Type, Item Category, and MRP Group.

Answer: C

SPRO > Sales & Distribution > Sales Documents > Schedule Lines

SAP S/4 TM - PPF (non-Technical Perspective)

 

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SAP S/4 TM - Purchasing Organization Units Determination in the Freight Order Settlement (Part 2)

 

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SAP S/4 TM - Purchasing Organization Units Determination in the Freight Order Settlement (Part 1)

 
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SAP S/4 TM - Freight Unit Building Rule Simulation 02

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SAP S/4 TM - Freight Unit Building Rule Simulation 01

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SAP S/4 Extended Warehouse Management - Clear Bins in the Production Supply Area

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SAP S/4 TM - Freight Unit auto creation at Outbound Delivery

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SAP S/4 TM - Incoterms Basics

 

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SAP S/4 TM - Transportation Relevancy

 

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SAP S/4 TM - Mean/Modes of Transport & Carrier

 

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SAP S/4 TM - Transportation Management Locations

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SAP S/4 TM - Organization Units in Transportation Management Processing

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SAP S/4 TM - Freight Unit Building Rule Configuration

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Question no 4007 : Info Record Characteristics

In SAP Material Management as at ECC6 EhP8, which of the following are Mandatory when create a Purchasing Info Record ?

(more than one answers)

A. Vendor
B. Plant
C. Purchasing Organization
D. Material Master
E. Material Type
.

Answer: A, C

A, C) An Info Record with only Vendor and Purchasing Organization is a Material Group info Record without Plant.
B) A Plant is not necessary for an Info Record as when the Company is able to negotiate prices from the Supplier regardless of the Plant.
D) When a Material Master is not entered for an Info Record, it can be a Material Group Info Record.

SAP S/4 TM - Configure new Freight Order Type and Create a Freight Order

 

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SAP PM - LKD and Do not Execute Fuctions

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SAP S/4 TM - Basic TM Transportation End-to-End Process

 

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SAP S/4 TM - Transportation Network 2 (Shipping Point - Transportation Lane - Customer)

 

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SAP S/4 TM - Transportation Management Process Overview

 

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SAP TM - Freight Order Basic 2

 

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Question no 4006 : Purchasing Central Contract

In SAP Material Management as at ECC6 EhP8, which of the following are possible for a Central Contract ? 

(more than one answers)

A. The Central Contract is created without a Plant.
B. Plant specific Conditions are possible.
C. The Purchasing Organization for the Central Contract can be different from the Purchasing Organization that issue the Purchase Order Release against the Contract.
D. Same or different Contact Validity Periods are required to be entered for each Contract items.
E. Both Quantity Contract and Value-based Contract can be created for a Central Contract.

Answer: A, B, C, E

A)  TRUE.

A Central Contract can be created without a Plant, Purchase Requisitions or Purchase Orders can be issued by other Purchase Organizations (need not be the Central Contract's Central Purchasing Organization) with reference to the Central Contract. The is also TRUE for RFQ where the RFQ can also be created without Plant, the accepted Quotation (without Plant) can then be used to generate Purchasing Info Record without Plant.

B)  TRUE. 

For Central Contracts, each Contract item can have Plant specific conditions (which is optional). When issuing Purchase Orders with reference to the Central Contract, the Plant conditions in the Central Contract can then be copied to the Purchase Order item level depending on the Plant in the PO item. However, it is also possible to have just one Pricing Condition in the Central Contract for ALL the Plants. 

Another method is to setup Purchasing Info Record by Local Purchasing Organizations for their own Plants which can be read into the Purchase Order created with reference to the Central Contract.

C)  NOT TRUE.

A Central Purchasing Organization (either without Company Code assignment or with Company code assignment ie: cross Company or Company Specific) can be used to create the Central Contract while the PO release against the Contract can be issued by another Purchasing Organization.

D)  TRUE. 

Validity period is at the Contract Header level for both Quantity Contract or Value-based Contract. There are NO Validity Period at the Contract item level; however, item level Pricing Condition may have validity periods for Pricing Conditions only. 

E)  TRUE. 

It is possible o create Central Contract without Plant for both Quantity and Value-Based Contract scenario. For Quantity Contract, PO released cannot be more than the total Quantity in the Contract while for Value-based Contract, PO released cannot be more than the total Value in the Contract; and both are possible for Central Contracts.