Regarding MRP

Hi,
I have st up MRP for a material with also source list & info records defined. I am doing MD01 & than in MD04 i am converting the planned order to PR. Than PO is done & GR. Now when once again i am consuming than in MD04 its showing me the last PR. How to create a new PR against a new MRP run.
Thanks

John,
Csaba is correct. In standard SAP, it is not possible to create multiple line item PRs from the MRP run. This is how SAP has designed the standard MRP functionality. I would think the reasoning behind this is the complexity involved in the way the MRP program processes materials that are relevant to the planning run one at a time.
Besides this, I don't think there is a genuine need for this functionality for most businesses (except probably the managing and tracking a high volume of PRs by material planners or for reasons of PR approvals where the requirements need to be viewed as a whole and not for each material).
You can always consolidate or group certain PRs and convert them into POs using ME58 or ME59N based on a range of criteria (purchasing group, tracking number etc). You can also determine the source determination at the time of creation of the PR
Also note that that it is possible to consolidate multiple requirements for a single material into ONE PR based on the lot-sizing procedure (weekly, monthly) used in the material master.
Probably, Steve, Arif or other experts can offer a better explanation.
Hope this helps.
H Narayan

Similar Messages

  • Regarding MRP Area

    Hi All,
    I would like to clarify a doubt regarding MRP Area concept.
    1. MRP Area at Storage Loc level:
        What's the main advantage of this? i have gone through the documentation and 
        understood how to configure it, but in a real scenario how its useful?
       For example: I have finished part: A which has components B, C & D. If i assign
       the stor.loc X  MRP area to B & C not D and run the MRP on A, how system
       will react?
      I am not able to understand how it's beneficial in real scenario?
    Can some body help me out? i understand how it's useful for MRP Area for Sub-Con coz it will plan seperately for individual sub-con's..
    Thanks and looking forward for your valuable hints and answers,
    Chandra

    The procedure is made clearer in the following example:
    Assembly A is produced on production line 1. Components B and C, which are procured externally, are necessary for the production and are withdrawn from storage location 0001.
    You can represent this situation in the system as follows:
    You create an MRP area of the storage location type for storage location 0001 in Customizing for MRP. You assign the MRP area to storage location 0001.
    You assign this MRP area to the components B and C in the respective material master records by creating an MRP area segment. You enter storage location 0001 in the Storage loc. for EP field in the MRP area segment, as this is also to be the receiving storage location for the components.
    You create a production version for production line 1 in the material master for assembly A. In this production version, you enter storage location 0001 as the issue storage location for the components.
    In the planning run, the system calculates the dependent requirements for components B and C and determines the issuing storage location 0001 using the production version. This enables the assignment of the dependent requirements to the MRP area for storage location 0001. When the system determines the procurement elements for B and C, it reads the external procurement storage location and uses this as the receiving storage location. This is also storage location 0001 so the procurement elements are assigned to the MRP area for storage location 0001. You can use this procedure to selectively plan the components that you require on the production line.
    If you do not work with production versions, you can also enter the issue storage location for the components in the BOM, in the work center using the supply area, or in the Issue stor. location field in the MRP data of the material master record
    Regards
    TAJUDDIN

  • Questions Regarding MRP

    I had a couple of questions regarding MRP. Will be glad if you could answer these:
    Is it possible to remove the 'in house production time' & 'planned delivery time' from MRP?If it is possible, what will be the impact of removing the above?
    Can we change the start/end date of the factory calendar, with or without removing the above?
    Please answer the above.
    Thank you very much.
    Regards

    If we keep inhouse production time and planned delivery time as zero, will this have any other impact?
    Secondly, is it possible that we can manually change the start and end dates which are suggested electronically by SAP?
    As I said earlier if you keep in house production time as zero system still would allow to create a material master record and based on this MRP calculates the dates required for any planned order in basic scheduling.
    If you keep this as zero you order basic start and end  basic date would be on same day.
    It is recommended to maintain the no days required for in house produced material in MRP2 or in WS view or you need to enter the setup, tear down, processing, and inter operation times so that based on these values, the system determines the in-house production time on the basis of lot size.
    Same way for Planned Delivery Time, only the difference in both of these fields are In house Production time considers the FC where as Planned delivery time considers the calendar days.
    For your 2nd Question if you change the system proposed dates in any planned order based on the scheduling type start and end dates would be changes accordingly.
    Br
    KK

  • Regarding MRP Run

    Hi All Gurus,
                     Can anyone of you tell me what is the outputs of followings?
    1) Suppose we put MRP Type PD ,Lot-size- EX,Min.Lot size -5, Availability check 01,then what is the o/p after MRP run?
    2) we put MRP Type -ND,lot size -EX,Remaining same as above .
    3) we put MRP Type -PD, Lot size-FX,Fixed Lot-100,Remaining things are same as above .

    Hi Narayan,
    Please find the answer as below
    1.The MRP will generate Procurement proposals for the order quantity.i.e the effect of EX-lot for lot order . If the order quantity is less than 5, then also the procurement proposal will be for 5nos.i.e effect of minimum lot size.
    2.Since MRP type ND no planning i.e. no requirements generated.
    3.The MRP will generate procurement proposals for quantity 100. If more nos required, then many procurement proposals each for quantity 100.
    Hope is is clear.
    Thanks and regards
    Murugesan

  • Isseu regarding MRP calculation.

    Hi Gurus,
    We have MTS scenario with strategy 10 ,requirement type LSF , in MD61 PIR are present from 01 /01/2011 till today , but when i check in MD04 only requirments from 01/04/2011 are taken into consideration ( for LSF requirment after 01/04 system is showing -ve qty and plan order are generated for these independent requirement ) , i want to know why PIR from 01/04/2011 are taken into account and why older PIR are not considered.
    Current stock is 0 and planning time fence in 30 days and planning horizon is 100 days,, please help me understand why older demands are not taken for calculations.
    Thank you,

    Hi.
    I assume you have run the MRP with the processing key NETPL (Net Change in Planning Horizon). And as you have define planning horizon 100 Days that's why system is taking the requirement for only 100 days. If you want to have total requirement have to consider use MRP processing key NETCH (Net Change in Total Horizon).
    Regards
    Vivek

  • Regarding MRP elements-SimReq,SimOrd

    Hi,
    We have MRP elements SimReq and SimOrd in MS05. Can anyone explain what exactly these mean and how can we simulate the same in Quality or Development system.
    Thanks in advance.

    Hi,
    SImReq & SimOrd are meant for Simulative Planning i.e. Simulative planning is part of long term planning which is overall check of your mfg. facility in order to check whether it is feasible to fulfill certain targets in available capacity or not. Accordingly Manufacturing , Sales & other relavant functions are planned for longer runs.
    This is however rough cut planing and as other friends told simulative MRP elements are not relavant for normal MRP / CRP. These are just to have rough cut estimate of mfg. & delivering capability of organisation to formulate broader plans for longer periods say for 12 months or more.
    Hope this clears your doubts.
    Regards,
    Tejas

  • Regarding mrp pr requirement

    Dear Gurus,
    we are working on MRP
    Through MRP purchase requisitions are raising on date basis.
    i.e.  suppose in aweek  raw material is required  @ 100 KG.
          with referance to BOM  & Qty of header level it raises  5 purchase requisitions.
    I require the system should raise one PR consolidating the qty of 5 PR.
    so that i can assign one PR to the delivery schedule
    is it possible. ?
    confirm the custmising  & process.
    thanks in advance.
    suhas inamdar.

    Suhas,
    What you are describing is 'Periodic Lot Sizing", which means basing the procurement proposals on a time period.
    This is effected by making the appropriate changes in the Material Master of the materials you are planning.  I believe that the Lot Size (MRP1 tab of Matmaster)  you want is the standard SAP lot size WB, 'weekly lot size'.  If you select this SAP standard lot size, no other configuration is needed.
    In this case, when MRP is performing its net requirements calculation, it finds the first instance of a shortage.  It then looks forward in time for all additional uncovered requirements, for one week, and then it proposes a single proposal (purchase req) that will satisfy the entire set of requirements, regardless of parent part.
    Rgds,
    DB49

  • Regarding MRP and WIP scheduling differences

    One doubt is whether variable leadtime is used by both MRP as well as WIP scheduler. I have a feeling that it is being used by only MRP. The backward scheduling done by WIP scheduler always gives 3 times the days given by MRP . So if due date is say 3-jun-2002 for a particular item with quantity 100. MRP gives a start date of 27-May-2002 whereas WIP Scheduler gives a start date of 15-May-2002.I know that WIP is considering 8 hours as working time as defined in our workday calender but MRP is taking 24 hours as working time.Why is this so?

    I had been a little out of touch here but the difference is in the type of scheduling, WIP uses what is known as Detailed scheduling algorithm and hence the difference. Will get back to you after clearing the cob webs created by recent randezvous with COM/MTS. Hope this helps

  • Generation of MRP PR with Equipment detail

    We have two issues regarding MRP requisition generation. Most of
    the MRP materials are also defined in the Equipment BOM in PM
    module. The complete specification of the equipment is
    available in the PM module i.e. equipment specification. Now
    following are my issues:
    1. One requisition for one MRP material is generated through MRP,
    however, we wants to generate one requisition of certain type of
    MRP material i.e. group certain type of material and generate
    single MRP requisition.
    2. Is their any possibility to pick equipment specification from
    equipment BOM at the time of MRP requisition generation?
    Thanks & Best Regards

    Hi
    pLS CHECK THE REPLY THAT GIVEN BY MR. BRAHMANKAR
    It is possible first you need to create planned order during MRP run then,
    In order to assign multiple planned order to a single purchase requisition number, you need to make used of the external purchase requisition number range.
    Define your external purchase requisition number range in OMDN.
    Assign the external purchase requisition group number range to used in OMI3.
    Once the IMG settings are completed, you can used MD15 to assign the multiple planned order into a single purchase requisition number.
    In MD15, select the planned order you want to convert to a purchase requisition.
    Next, click the Convert Online button.
    SAP will display the planned order in change mode.
    Now, look for the Purchase Requisition fields and supply the Purchase requisition number.
    For example, assuming that you assign the external number range 2000001.
    In the planned order, you type the first number range 2000001 and item number 10 subsequently, copy and paste the number range but input the item number manually.
    It would be like 2000001 10 and save
    2000001 20 and save.....
    The disadvantages is that the user have to track and enter the external number range manually.
    Therefore, there is a trade off, between
    1. having a single planned order for a single purchase requisition number or
    2. having multiple planned order to a single purchase requisition number.

  • Mrp control parametrs

    Hi, Pls advise what are control parameters need to maintain in mdbt variant for running mrp immeadietly after golive. pls note cutover data is uploaded and using strategy 20. pls advise.

    Dear ,
    Few Inputs regarding MRP run at Go Live and Post Golive situation :
    1.Go Live time MRP run : Based on WIP posting , open orders (PR,PO,SO,STPR,STO) , Stock , you will run MRP for the frist time with Process Indicator -NEUPL,2,1,3,3,2 in MD02/MD03
    2.After that you need to analysis the planning result -Net Rquerement (+/-) and lead time analysis , safety stock , replensihment pattern -weekly , month as per your business requirement
    3.Basically , frequency of MRP run depends on the material lead time and order fullfill ment (Sales Order ,Independent Order ) .
    4.It depends on the planning situtation -Demand Pattern and replenshment set up.For example , you have central plant-supplying plan and having 6 DC.The lead time of DC is 7 days from suppling plant and Vendor to Suppling plant 90 days .In thsi case , i hope u need to run MRP every month for DCs if you want to repleish monthly basis .Where as in Supplying plant every three months besaue of lead time .It depends on order fullfill ment and LT
    Few parameters :
    1.Stockable or non stockable material
    2.Lead Time
    3.Replishment strategy and RLT
    4.Demand pattern -Order /In dependent
    5.Safety Stock
    6.Planning Structure
    7.Validity of the Fcatory calander
    8.WIP posting or WIP should cleared .
    9.All the stock are updated or not .
    Hope this will give you an idea on your requirement
    Regards
    JH

  • MRP for plant/storage location

    Dear all,
    I have a question regarding MRP extension for plants and materials.
    There is one plant (8000). Company has recently got two locations u201Cxu201D and u201Cyu201D in different states. MRP has to be run for u201Dxu201D  for sales orders and PRu2019s generated should be directed to the main plant 8000 which then triggers a TO for u201Cxu201D.
    My question is since u201Cxu201D and u201Cyu201D are not yet maintained in SAP, Please advise whether to maintain them as plants or as storage locations and also the main steps to be followed for this process. Also, Please advise is there any config to be done so that PRu2019s are directed to plant 8000 and automatic TO/STO are triggered to u201Cxu201D
    Suraj

    Hi
    you have to create  both X&Y as plants.
    Then the procedure to be followed in multi plant planning.
    The following link can be followed.
    http://help.sap.com/saphelp_erp60/helpdata/en/f4/7d3f9344af11d182b40000e829fbfe/frameset.htm
    Regards
    YMREDDY

  • Sap pp -MRP-area

    Hello SAP-Guruu2019s
    Pls tell me the Procedure/steps/Details to maintain MRP-area for a Vendor & also for a Sub-Contractor.
    Any comments welcome   & Thanks in advanc

    Hi,
    Pls. find the following details regarding MRP Area :
    MRP Area
    Definition
    The MRP area represents an organizational unit for which material requirements planning is carried out independently.
    Basically, there are three types of MRP area:
    Plant MRP Area
    The plant MRP area initially contains the plant together with all its storage locations and stock with subcontractors.
    When you have defined MRP areas for storage locations and for subcontractors and you have assigned the materials, the plant MRP area is reduced by exactly this number of subcontractors and storage locations. This is because they are now to be planned separately.
    MRP Areas for Storage Locations
    You can define an MRP area that consists of a particular storage location, by creating an MRP area and assigning the storage location to it. Material requirements for this storage location are then planned separately from the rest of the plant.
    You can also group several storage locations into one MRP area, by creating an MRP area and assigning the storage locations to it. These storage locations are then planned together.
    A storage location of a plant may be assigned to only one MRP area.
    MRP Areas for Subcontractors
    You can also define an MRP area for each subcontractor.
    A subcontractor may be assigned to only one MRP area. An MRP area of the subcontractor type may also only contain one subcontractor.
    Use
    You can carry out MRP specifically for the determined MRP areas. This enables you to carry out differentiated material requirements planning. The requester can be, for example, the production on a particular assembly line or a subcontract order.
    The MRP area allows you to have specific control over the staging and procurement of important parts produced in-house and purchased parts for each shop floor area. You can, however, also plan the provision of components for the individual subcontractors.
    MRP areas of the storage location or subcontractor type are only suitable for:
    components that are planned and produced for stock
    finished products that are planned and produced for stock. By assigning a storage location in a sales order or by entering an MRP area when creating the planned independent requirements, you can define whether a material is planned in the plant MRP area or in the MRP area of the storage location.
    Finished products and important assemblies intended for make-to-order or engineer-to-order production are always planned in the plant MRP area.
    The planning run takes into account the planning with MRP areas as follows:
    If you do not enter a separate scope of planning, the system plans the whole plant, that is, all MRP areas in the plant, during the total planning run. If you want to carry out a total planning run for a particular MRP area only, you must specify the required MRP area in the scope of planning.
    During single-item, multi-level planning, the system plans the selected material in the MRP area entered. In addition, the system takes into account planning file entries from other MRP areas, for example, if the material is to be procured using stock transfer.
    During single-item, single-level planning, the system plans the selected material in the MRP area entered only.
    Structure
    You define the MRP areas in Customizing for MRP. You can thereby assign the following to an MRP area:
    one or more storage locations (example: you want to carry out planning for a particular assembly line and therefore assign a production storage location to the MRP area)
    a subcontractor.
    You assign the various MRP areas to the materials in the material master. For this, you create an MRP area segment for a material for every MRP area, in which it is used. In this MRP area segment, you can define MRP parameters such as, for example, the lot size or MRP type. This allows you to plan the material differently in the MRP area from how you plan it in the plant MRP area.
    MRP with MRP areas for the material is not activated until the material has been assigned to an MRP area. If you have not assigned a material to an MRP area, that is, you have not created an MRP area segment in the material master, the material will continue to be planned in the plant MRP area only. If you have assigned an MRP area to it, the system can plan it in the plant MRP area and in the assigned MRP area.
    Integration
    You can carry out material requirements planning for MRP areas using all MRP procedures and all lot-sizing procedures.
    You can also carry out an independent material forecast for MRP areas using your own parameters.
    The material consumption values are updated separately for each MRP area.
    A separate ATP check is carried out for each MRP area.
    If several storage locations belong to an MRP area, the system can also carry out a check at two levels, that is, at storage location level and at MRP area level.
    Example: Subcontractor
    You can also carry out planning for components to be provided in subcontracting using an MRP area by defining an MRP area for every subcontractor and assigning the components to be provided to the MRP area of the subcontractor. You therefore plan the requirements to be provided for these components for one subcontractor separately from all other requirements (see Planning for Components to be Provided in Subcontracting).
    Depending on the requirements situation, the system creates either stock transfer reservations from the plant to the stock of material provided of the subcontractor or it creates purchase requisitions within subcontracting/third-party order processing, according to the special procurement key settings.
    Implementing MRP Areas
    Implementation Options
    The main reason for you to implement MRP areas is if you would like to plan materials, which are required in different shop floor areas, storage locations or by subcontractors, separately from one another.
    As soon as you have activated materials requirements planning with MRP areas, this type of MRP is active at client level, that is, MRP will be carried out in this way in all plants.
    Material requirements planning with MRP areas cannot be reversed.
    Process Flow
    You can implement material requirements planning with MRP areas in three steps:
    You convert the existing planning file entries at plant level to planning file entries at MRP area level.
    During the conversion, the system creates a plant MRP area for every plant as a background job. This, however, will not affect your planning. The processes in material requirements planning and the planning results remain unaffected.
    The conversion is also useful even if you do not work with MRP areas, but still have to plan for several plants, as the new planning file improves system performance during the planning run.
    You activate MRP with MRP areas in Customizing for MRP. This causes the MRP area field to appear in the applications of MRP and in related areas. When you enter the plant number, the system automatically fills the field with the number of the plant MRP area. The number of the plant MRP area is the same as the plant number.
    This does not affect the planning run as the plant MRP area still corresponds to the present plant.
    You define an MRP area, for example, for a storage location. You then assign the materials that are to be planned for this storage location, by creating an MRP area segment in the material master.
    Materials requirement planning for this storage location is then carried out separately. The storage location stock is no longer included in the available stock of the plant MRP area. The receipt and issue elements of this storage location (MRP area) are also not taken into account in the plant MRP area. They are only taken into account in the MRP area of the storage location.
    If you have already worked with storage location MRP the system still carries out storage location MRP even after the activation of MRP areas. You need to decide in principle whether you want to continue using storage location MRP or whether you want to create MRP areas for the storage locations that are planned separately. It is not possible to simultaneously plan a material using storage location MRP and an MRP area for the same storage location.
    If you decide to use MRP areas, you should then try to convert all storage locations that are planned separately to MRP areas in one step. Before you assign the material to an MRP area, you must remove the MRP indicator, which is located in the material master at the storage location organizational level (view MRP 4) in the screen area Storage location MRP.
    Even if you have defined MRP areas in Customizing, the system plans the materials in the plant MRP area until you assign the MRP areas to the materials.
    Only the assignment of one or more MRP areas to a material, by creating MRP area segments in the material master, actually cause changes in the material requirements planning.
    Hope this helps.
    Regards,
    Tejas

  • MRP out put issue

    Dear All PP gurus,
    I am having one issue regarding MRP as below
    We encounter one item 1.03424.0009  x 6 , which system did not prompt us to buy on 30.03.09 after MRP run .
    Can you please advise why ?
    strategy is 40,MRP type PD ,Lot size is MB,Availability check ZC,Procurement type F.
    Means what my problem is that why the system didnot prompt to buy yhis item on 30.03.2009?
    Thanks,
    Narayan

    Hi,
    Please create a planning file entry for this material - plant combination using MD20.
    After creating the entry, re-run MRP & the system should put out a procurement proposal if there is no stock.
    Check & revert if it resolves the issue.
    Regards,
    Vivek
    Added
    For MRP run to consider a material, initial pre-requisites the MRP type should be relevant for MRP eg: PD, then a planning file entry should exist.
    In this case as you say there is no planning file entry, system will not consider the same. Hope it clarifies your query.
    Edited by: Vivek on Apr 7, 2009 4:24 PM

  • MRP Types and  Logic of Calculating

    Hi Experts,
    I have a issue regarding MRP Types,ie,one of my client wants to know the detailed instruction of MRP types and each MRP type functions.I have given him an explantion in general of all MRP Types,but now he wants to know the detailed logic for each MRP type, for example which include in calculating and how to do calculating.
    Request everybody to provide if you have some detailed SAP instruction for this or not.
    Awiting for your replies.
    Cheers,
    Kumar.S

    Dear,
    Brahm,Vivek,Prasabh,Dharma,Murali,Brahmji,Radha..and all our experts...
    Awaiting 4 ur replies.
    pls respond.
    Cheers,
    Kumar.S

  • MRP AREA CONFIG & PROCESS

    Hi PP Gurus,
    I want to know about the complete process of MRP Areas.
    1) Complete step by step process in terms of config. & front end in SAP.
    2) How to activae it for Plant, Storage location & vendor.
    3) Difference between above three & where they are exactly used.
    The person who helps will be awarded points = 10.Sure.
    Regards

    Hi,
    Pls. find the following details regarding MRP Area :
    MRP Area
    Definition
    The MRP area represents an organizational unit for which material requirements planning is carried out independently.
    Basically, there are three types of MRP area:
    Plant MRP Area
    The plant MRP area initially contains the plant together with all its storage locations and stock with subcontractors.
    When you have defined MRP areas for storage locations and for subcontractors and you have assigned the materials, the plant MRP area is reduced by exactly this number of subcontractors and storage locations. This is because they are now to be planned separately.
    MRP Areas for Storage Locations
    You can define an MRP area that consists of a particular storage location, by creating an MRP area and assigning the storage location to it. Material requirements for this storage location are then planned separately from the rest of the plant.
    You can also group several storage locations into one MRP area, by creating an MRP area and assigning the storage locations to it. These storage locations are then planned together.
    A storage location of a plant may be assigned to only one MRP area.
    MRP Areas for Subcontractors
    You can also define an MRP area for each subcontractor.
    A subcontractor may be assigned to only one MRP area. An MRP area of the subcontractor type may also only contain one subcontractor.
    Use
    You can carry out MRP specifically for the determined MRP areas. This enables you to carry out differentiated material requirements planning. The requester can be, for example, the production on a particular assembly line or a subcontract order.
    The MRP area allows you to have specific control over the staging and procurement of important parts produced in-house and purchased parts for each shop floor area. You can, however, also plan the provision of components for the individual subcontractors.
    MRP areas of the storage location or subcontractor type are only suitable for:
    components that are planned and produced for stock
    finished products that are planned and produced for stock. By assigning a storage location in a sales order or by entering an MRP area when creating the planned independent requirements, you can define whether a material is planned in the plant MRP area or in the MRP area of the storage location.
    Finished products and important assemblies intended for make-to-order or engineer-to-order production are always planned in the plant MRP area.
    The planning run takes into account the planning with MRP areas as follows:
    If you do not enter a separate scope of planning, the system plans the whole plant, that is, all MRP areas in the plant, during the total planning run. If you want to carry out a total planning run for a particular MRP area only, you must specify the required MRP area in the scope of planning.
    During single-item, multi-level planning, the system plans the selected material in the MRP area entered. In addition, the system takes into account planning file entries from other MRP areas, for example, if the material is to be procured using stock transfer.
    During single-item, single-level planning, the system plans the selected material in the MRP area entered only.
    Structure
    You define the MRP areas in Customizing for MRP. You can thereby assign the following to an MRP area:
    one or more storage locations (example: you want to carry out planning for a particular assembly line and therefore assign a production storage location to the MRP area)
    a subcontractor.
    You assign the various MRP areas to the materials in the material master. For this, you create an MRP area segment for a material for every MRP area, in which it is used. In this MRP area segment, you can define MRP parameters such as, for example, the lot size or MRP type. This allows you to plan the material differently in the MRP area from how you plan it in the plant MRP area.
    MRP with MRP areas for the material is not activated until the material has been assigned to an MRP area. If you have not assigned a material to an MRP area, that is, you have not created an MRP area segment in the material master, the material will continue to be planned in the plant MRP area only. If you have assigned an MRP area to it, the system can plan it in the plant MRP area and in the assigned MRP area.
    Integration
    You can carry out material requirements planning for MRP areas using all MRP procedures and all lot-sizing procedures.
    You can also carry out an independent material forecast for MRP areas using your own parameters.
    The material consumption values are updated separately for each MRP area.
    A separate ATP check is carried out for each MRP area.
    If several storage locations belong to an MRP area, the system can also carry out a check at two levels, that is, at storage location level and at MRP area level.
    Example: Subcontractor
    You can also carry out planning for components to be provided in subcontracting using an MRP area by defining an MRP area for every subcontractor and assigning the components to be provided to the MRP area of the subcontractor. You therefore plan the requirements to be provided for these components for one subcontractor separately from all other requirements (see Planning for Components to be Provided in Subcontracting).
    Depending on the requirements situation, the system creates either stock transfer reservations from the plant to the stock of material provided of the subcontractor or it creates purchase requisitions within subcontracting/third-party order processing, according to the special procurement key settings.
    Implementing MRP Areas
    Implementation Options
    The main reason for you to implement MRP areas is if you would like to plan materials, which are required in different shop floor areas, storage locations or by subcontractors, separately from one another.
    As soon as you have activated materials requirements planning with MRP areas, this type of MRP is active at client level, that is, MRP will be carried out in this way in all plants.
    Material requirements planning with MRP areas cannot be reversed.
    Process Flow
    You can implement material requirements planning with MRP areas in three steps:
    You convert the existing planning file entries at plant level to planning file entries at MRP area level.
    During the conversion, the system creates a plant MRP area for every plant as a background job. This, however, will not affect your planning. The processes in material requirements planning and the planning results remain unaffected.
    The conversion is also useful even if you do not work with MRP areas, but still have to plan for several plants, as the new planning file improves system performance during the planning run.
    You activate MRP with MRP areas in Customizing for MRP. This causes the MRP area field to appear in the applications of MRP and in related areas. When you enter the plant number, the system automatically fills the field with the number of the plant MRP area. The number of the plant MRP area is the same as the plant number.
    This does not affect the planning run as the plant MRP area still corresponds to the present plant.
    You define an MRP area, for example, for a storage location. You then assign the materials that are to be planned for this storage location, by creating an MRP area segment in the material master.
    Materials requirement planning for this storage location is then carried out separately. The storage location stock is no longer included in the available stock of the plant MRP area. The receipt and issue elements of this storage location (MRP area) are also not taken into account in the plant MRP area. They are only taken into account in the MRP area of the storage location.
    If you have already worked with storage location MRP the system still carries out storage location MRP even after the activation of MRP areas. You need to decide in principle whether you want to continue using storage location MRP or whether you want to create MRP areas for the storage locations that are planned separately. It is not possible to simultaneously plan a material using storage location MRP and an MRP area for the same storage location.
    If you decide to use MRP areas, you should then try to convert all storage locations that are planned separately to MRP areas in one step. Before you assign the material to an MRP area, you must remove the MRP indicator, which is located in the material master at the storage location organizational level (view MRP 4) in the screen area Storage location MRP.
    Even if you have defined MRP areas in Customizing, the system plans the materials in the plant MRP area until you assign the MRP areas to the materials.
    Only the assignment of one or more MRP areas to a material, by creating MRP area segments in the material master, actually cause changes in the material requirements planning.
    Hope this helps.
    Regards,
    Tejas
    Edited by: Tejas  Pujara on Nov 7, 2008 12:02 PM

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