Help Required on Raw Material forecast

[Former Member]

Hi,

I am not an SAP consultant/ technical user, i am just a helpless user.

What i am faced with is that i dont get to see RM requirements for future months based on the forecast/sales plan for finished goods entered in the system. I am just able to see decent requirements for the running month but very less/inaccurate requirements for the remaining months. it seems as if while calculating, the system does not take into account if anything is being sold or will be sold at all. I might be wrong but this seems to be the case.

I view the planned requirements in COOISPI and the requisitions in MD04.

The current MRP type set is:PD

Please help as to how to fix this issue or how do i guide the I.T department who themselves are not sure of a one track solution to this issue.

Thanks.

[anup_patil3 · Accepted solution]

Hello There,

Don't worry... you'll get answers to your SAP queries on SDN. Just one thing, please explain your issue in detail & clear.

Here you're saying that

- i dont get to see RM requirements for future months based on the forecast/sales plan for finished goods entered in the system.

So to clear your understanding, you will get future forecast values for each material (whether ROH/FERT/HALB etc.) based on it's Past Sales History. So there is not link between RM requirement & the finished product.

Then you're saying

- I am just able to see decent requirements for the running month but very less/inaccurate requirements for the remaining months.

So please clarify if you're getting some values for future months or at all NOT getting any value. If you think that there are few values in future but those are not correct then please check your Forecast Parameters.

Parameters means your forecast & sales history periods, forecast profile & model selected etc.

Just FYI... you can see complete forecast structure of a material in Planning Table (Tcode- MC94). It will show you past sales history updated for a material along with future forecast values. Also you can run forecast run for checking purpose in the same screen.

Do the needful checks with your PP functional person & get back if there is anymore issue.

Regards,

Anup

[Former Member · Accepted solution]

Anup,

Thank you so much, i really wasnt expecting any reply since my information lacked the knowledge which maybe was required for anybody to reach to the bottom of the issue.

Here is what I got from PP my rep. He might have a limited knowledge as well since he is not an experienced individual as well. And at the moment we are not even sure how the system is working:

The business is not using consumption based forecast, so they basically are not operating through automatic forecast rather are banking entirely on the sales plan.

Here is the procedure which they are following:

1. Planning hierarchy is defined

2. Sales plan is uploaded through excel for future months

3. It is copied to the demand plan

4. PIRu2019s are generated (the demand planners can manually change it before MPR/MRP run.

5. MPS/MRP run

6. Plan orders are generated, planned orders are converted into process orders etc

With this procedure being followed I can see the ZROH planned orders in COOISPI and Requisitions in MD04.

I just want that I am able to see RM requirements for the months for which the sales plan is entered. Currently as I told you I can see reasonable RM requirements for the first month, and not the following months.

Please let me know what other information you require from me.

I know this lack of information might frustrate you, but il keep getting it as you suggest.

[anup_patil3 · Accepted solution]

Hi,

So considering your info, business is not using any historical data to generate any specific forecast but directly referring to Sales Plan as a forecast for future periods.

And then MRP is generating a Planned Orders or Pur Req based upon it's procurement type.

Now where exactly you're seeing forecast values? Which transaction or Z Report ?

Also have you tried to compare the forecast value/s through that tcode/Z report with Sales Plan values ?

Also you're saying that you can see ZROH Planned Orders in COOISPI & Pur Req in MD04. But you can see both elements in MD04 also.

Please revert without any hesitation. I'll definitely try to help you out.

Regards,

Anup

[Former Member · Accepted solution]

Anup,

Thank you for reverting back.

You got it right.

To verify how the system is working i have the pp rep upload the same sales plan for 5 months. So that we get to know what results to expect each month.

What they currently are doing (detail with T-code):

Uploading sales plan to the active version through t-code MCZS

Converting this to the active version through t-code OLIX

Re organizing the PIRs through t code MD74

Converting the sales plan to demand plan through MC8G

Running the MPS/MRO through MD40

Once the MRP with sales plan for the future months inserted is run then i can see planned orders for future months in MD04 and COOISPI (planned orders are same in both reports, COOISPI just provides a better view without looking at the purchase requisitions) so basically i am considering the planned orders as my forecast at the moment.

I have tried comparing the values with the sales plan. The sales plan and planned orders after the MRP run do match but after the second month on wards. So for the first month the requirement is huge (safety stock+second month's requirement) and then as per the sales plan from second month on wards, the requirements end one month in advance to the sales plan (while viewing MD04). At RM level there are huge variations: e.g for an RM with average consumption of say 200 k kgs, i am able to see the first month at 168 k kgs then only 553 kg in the following month, and 1336 kg in the next.

Please let me know what other information you require from me.

Thanks. Highly appreciate your concern.

[Former Member · Accepted solution]

I guess you're looking at the planning of a raw material & find the demand being lumped together for all 5 months of demand loaded at the top parent.

If my understanding is right, then all you need to do is look at the BOM structure, check the lead times & lot sizing you have maintained for each part. Once you study that, you will know why the demand has lumped together for the child part.

If the above is not the case, then do upload screenshot of MD04 for the part to some portal & paste the link here for a better understanding.