Plan-to-Produce in SAP: BOM, MRP, Production Order, Settlement (PP, MM, FI) | Episode 6

Episode six of SAP Concepts. Plan-to-produce — how forecast demand becomes a finished good on the shelf, through PP, MM, and FI. Eight minutes on the master data, the MRP engine, the production order as a cost collector, and how variance lands in FI at settlement. No transaction codes to memorise. No ABAP. Just the mental model of the manufacturing side of SAP — the three modules that move when a plant makes something. What You'll Learn: - The three master records — BOM, routing, work centre — and why each one must exist before you can plan - How MRP explodes a BOM into planned orders and purchase requisitions - What happens at production-order release — reservation, capacity booking, status change - Goods issue to production (movement 261) — the raw-material consumption posting - Confirmation — how labour and machine hours post to the order as a CO activity allocation - Goods receipt (movement 101) at standard cost — finished stock into inventory - Settlement at period end — how variance (actual minus standard) lands in FI and CO-PA - Why the production order acts as a cost collector throughout Timestamps: 0:00 - Intro 0:15 - What's in this episode 0:35 - The plan-to-produce loop 1:25 - Master data — BOM, routing, work centre 2:20 - MRP — material requirements planning 3:20 - The production order — release, reservation, capacity 4:15 - Goods issue to production (movement 261) 5:05 - Confirmation — labour and machine hours 5:55 - Goods receipt and settlement — variance to FI 6:55 - Recap — five points to remember 7:45 - What's next: Episode 7 — org structures Key Takeaways: 1. Master data is non-negotiable — BOM, routing, and work centre must exist before any planning happens. 2. MRP is a suggestion engine — it explodes demand, proposes planned orders and purchase requisitions, but nothing posts to FI until a planner releases. 3. A production order is a cost collector — every component issued and every hour confirmed accrues to its number. 4. Goods issue and confirmation charge cost to the order — MM for materials, CO for labour and overhead. 5. Goods receipt brings finished stock in at standard. Settlement at period end posts the variance (actual minus standard) to FI — that is how the P&L sees the true cost. Next in the series: Episode 7 — organisational structures. Client, company code, plant, storage location, sales org. The skeleton every transaction hangs off. Taught by CelesteAI. Like and subscribe for the rest of the SAP Concepts series. #sap #s4hana #sappp #sapmm #planningtoproduce #bom #mrp #productionorder #manufacturing #erp #saptutorial #sapconcepts #learnsap #fiori #universaljournal