Distribution of planned independent requirements can be key in getting your MRP results exactly right. This post is about how to break down your Sales and Operations Plan and schedule it for MRP. E.g. Assume your SOP is planned in monthly buckets, but you plan your production in weekly buckets and you use forward scheduling for your production orders. In this case you want independent requirement quantities show on the first day of the week. Another example: since you plan production on a daily basis you want your monthly forecast spread out on a daily basis throughout the month. Distribution of planned independent requirements can help you achieve this.
Tag Archive for 'MM'
In MC44 – Inventory Turnover (1) I explained the concept of Inventory Turnover and how it can be used. In this post I will explain the transaction itself. The transaction is mostly self-explanatory, but there is one option of particular importance.
Inventory Turnover is a prominent KPI in a lot of businesses. This post will give you some understanding on the concept. In another post I will give details on how the SAP report MC44 can be used to measure inventory turns and what data is used to calculate this ratio.
Inventory Turnover = Cost of Goods Sold (COGS) / Average Inventory at value
If you are not familiar with the term Cost of Goods Sold, this is the cost of your revenues.
Average Inventory is measured in value and not in volume.
If you divide both elements you know how often you sold you’re average inventory. “So what?” you ask. I will explain next.
Sometimes a planner wishes to share the planning status of a particular material with colleagues or partners that are not SAP users. In this case it is useful to export the planning overview to Excel and perhaps pimp the lay-out with some colorful headers.To do this -from within MD04 or MD07- go to Menu > List > Variable Print.
Immediately a new overview opens up that may look less attractive than the overview you are used to. On the screen ‘Print list – variable’ you can change the lay-out and save it as a variant like you are used to in standard SAP reporting.
To get the best Excel results export the report directly to an Excel table, as opposed to first store it as a local file and then open it in Excel. This way the lay-out is optimized for direct filtering and sorting.
This is all there is to it. Sometimes SAP life is that easy.
This blog offers a quick guide on how to use standard SAP Batch Determination for a material transfer. For an internal goods movement we need SAP to pick the batch from stock with the earliest Shelf Life Expiration Date (SLED). We don’t want our fresh products terminate themselves from stock…
1. For this we will be using standard IM search strategy ME001 – Standard Search Procedure.
IMG > Logistics > Batch Management > Batch Determination and Batch Check > Batch Search Procedure Definition > Define Inventory Management Search Procedure
Stock in previous periods can be a useful indicator in analyzing your stock positions through time per material or material group. Standard SAP report MC.9 offers this functionality:
It’s possible that a posting needs to be done in the previous period for correction purpose. For this you can use transaction MMRV. This is one of those actions that belongs to Finance. You don’t want to mess with this without their approval (at least in production).
If you ran into this post because you got the message that posting is only allowed in a previous fiscal period, you’re posting periods were not updated in time. To solve this issue you go here.
It is possible to let MRP propose the preferred (or fixed) vendor for your external procurement. This is especially useful in a scenario where a central purchasing department is dictating vendor selection, but where the actual procurement decisions (quantity and timing) is done elsewhere (e.g. production dept for procurement of raw materials). This post will give you the step-by-step:
Standard purchase order pricing is based on date of purchase order creation. Some vendors let their sales prices be determined by the date on which they deliver the goods (i.e. delivery date). SAP offers standard configuration for this through Pricing date category.
The two most relevant pricing date alternatives probably are delivery date and goods receipt (GR) date. You can set this category on different locations:
- Vendor Master – Purchasing tab (MK01)
- Contracts – Item: Additional data tab (ME31K)
- Inforecords – Purchasing Org Data 1 tab (ME11)
Since pricing date is usually determined per vendor, setting the pricing date category on vendor level is often sufficient as the value is copied at time of inforecord/contract creation.