Create Planned Order from production order

[Former Member]

HI Gurus,

I have a case that I do not have simple standard way to solve.

I produce raw material and I sell it. Then I purchase a semi-finished (coming from that raw material (it is purchase process and no subcontracting))

Then from that semi-finished I produce my Finish good.

Once we create the production order to convert the semi-finished into the final product we would like to trigger the creation of the Planned Order to produce new raw material.

One of the options found is to create BOM for the semi-finished with a "non-valuated" raw material (Mirroring the real raw material), and then run MRP for those "non valuated" materials.

The issue is that we would have duplicated materials and then convert the "non-valuated" Planned order to the real planned order.

If we add the Raw material into the BOM directly there are impacts in stock, finance....

Do you know another way to have clean an direct Planned Order creation? or any other suggestion? (trying to use SAP standard as much as possible)

Any idea is welcome.

Thanks in Advance.

[former_member196530]

Hi

Very interesting business process !!

I am not sure whether you are particular about creating the Planned Order for raw material to produce it .

But this can be also mapped along with Finished Good product production order where you can add this raw material as Bi-product in the Component view of the production order when you are converting the planned order using your semi finished as input .

are you inventorying the FG , SFG or only Raw material which will be produced as part of your business process to sell the same ? Are you creating the delivery for Raw material only ?? if yes , then its valuated material only .

Can  you come back with a business process flow with material details so that we can comment ?

Regards

JH

[RahulHanda]

Hi Ivan

Correct me if I am wrong:

Why would you trigger raw material again for the finished good production order which is consuming semi-finished?

Logically you produced (as an example) 100pcs of raw material - Sold the same 100 - purchased 100 as semi-finished - now producing 100pcs for finished goods. So why you want to produce raw material again?

or

Are you saying you want to reflect your forecast of finished goods till raw material level after doing netting at every level? This means forecast of 200 at finished goods, semi-finished 100 so requirement for raw material 100. Is this the case?

Regards

Rahul

[Former Member]

Rahul

thanks for your reply.

It is the first option you mention; when I start to convert the semi-finish into finish product I have to start producing new raw material.

Yes, I know it is weird, but this is the business process they have. Anytime they consume the semi-finished they will have to produce new raw material.

thanks

[RahulHanda]

Ivan,

To best of my knowledge you will not be able to create planned order for raw material if you have stock of semi-finished product which logically is consuming this raw material (no matter valued or non-valued). As this is the purpose of MRP, to check availability of material and generate supplies accordingly (if you already have stock for semi-finished then raw material will not get triggered).

For me your scenario means, you need to trigger supplies as soon as they are consumed (in your case sold to supplier, more or less). I would suggest you to look into below as first proposal:

Consumption-Based Planning - Material Requirements Planning (PP-MRP) - SAP Library

Second option could be to forecast on raw material itself (not sure which planning tool you are using, APO or PP itself or another). The forecast could just equal to finished good material forecast, for which you need create a logic to copy the forecast for the same or develop a solution which converts production order element as forecast for raw material.

In between, could you explain how currently company reaches to a decision that how much raw material has to be produced? What is the source for triggering raw material demand as of now and how it is being reflected in the system?

Regards

Rahul