SAP PP Explained: From Recipe to Reality | BOM, Routing, MRP, Production Order | S2 Ep4

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. MM was about buying. SD was about selling. PP is about making. Every other concept in PP fits one of five questions: what to make, what each item needs, how to make it, when and where to run each step, and what each unit actually cost. The bill of materials, the routing, the work centre, the MRP run, the production order, and the settlement — each piece is one of those five questions made concrete. No transaction codes to memorise. No SPRO walkthroughs. Just the mental model of PP in S/4HANA. What You'll 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 Timestamps will be added before publish. Key Takeaways: 1. BOM = the recipe (components per unit). Routing = the cooking instructions (operations on which work centres). Together they fully specify production. 2. Work centres carry CO's activity rates. Production-order operations consume those rates. Settlement returns variances to CO at order close. PP-CO joint number one. 3. MRP run = demand minus supply, walk forward in time, propose planned orders for in-house production and purchase requisitions for purchases. MRP Live runs in HANA in S/4 — no overnight batch. 4. The production order is the hard commitment: BOM reservations, routed operations on work centres, planned cost baked in, status moves CRTD → REL → PCNF → CNF → DLV. 5. PP reuses MM's movement types — 261 (component issue) + 101 (FG receipt) — with the production order as the reference document. Episode 2's vocabulary, used in full sentences. This is Module 4 of 5 in the Modules Deep-Dive season. Next week we close S2 with CO — the Management Lens. Taught by CelesteAI. Subscribe for the full season. #sap #s4hana #sappp #productionplanning #billofmaterials #bom #routing #workcentre #mrp #mrplive #productionorder #saptutorial #sapconcepts #learnsap #fiori #manufacturing #manageproductionorders