SAP Concepts: SAP PP Explained: From Recipe to Reality

SAP PP Explained: From Recipe to Reality

Module 4 of 5 in the SAP Concepts Season 2 deep-dive. PP — Production Planning — the module that turns raw materials into finished goods, and where the movement-type vocabulary from Episode 2 finally cashes in.

What you will learn

• What PP is for — five questions: what to make, what it needs, how to make it, when and where, and at what cost
• The Bill of Materials (BOM) — header + items, item categories (L stock, N non-stock, R variable-size, D documents), multi-level explosion
• The Routing — operations in order, work centres assigned, setup and processing times, components consumed per step
• Work Centres — the master record for machines and labour: capacity calendar, activity rates from CO, posting cost centre — the joint where PP meets CO
• The MRP Run — demand minus supply, walk forward, propose planned orders (make) or purchase requisitions (buy); MRP Live in S/4HANA HANA in-memory
• Planned → Production Order — the hard commitment with BOM reservations, routed operations, and planned cost; status lifecycle CRTD → REL → PCNF → CNF → DLV
• Movement types from Episode 2 — 261 (component issue), 101 (FG receipt), 131 (process order receipt) — production order as the reference document
• Settlement — variance (planned vs actual) settled to FI's price-difference account and to CO-PA at order close
• The Fiori star screen — Manage Production Orders with cost overview, document flow, and drill-down to work centre / cost centre / variance breakdown
• Three flavours of manufacturing — discrete, repetitive, process — same module, same machinery, different shop-floor pattern
• What we're not covering — long-term planning, capacity levelling, variant configuration, PP-PI detail, subcontracting, MES integration

Key takeaways

Watch the video above for the full walkthrough — eight-minute presentation-style explainer, no transaction codes or config screens.