S42020

Business Processes in SAP

S/4HANA Discrete Shopfloor
Control

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PARTICIPANT HANDBOOK
INSTRUCTOR-LED TRAINING
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Course Version: 26
Course Duration: 1 Day(s)
Material Number: 50166206
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Typographic Conventions

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The following typographic conventions are also used.

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Contents

vii Course Overview

1 Unit 1: Analyzing Master Data for Discrete Manufacturing

2 Lesson: Analyzing Master Data for Discrete Manufacturing

7 Exercise 1: Analyze Master Data

19 Unit 2: Applying the Integration with Production Planning

20 Lesson: Applying the Integration with Production Planning

23 Exercise 2: Assign your Area of Responsibility
25 Exercise 3: Create Planned Independent Requirements, and
Run MRP

33 Unit 3: Describing the Lifecycle of a Production Order

35 Lesson: Executing the Various Steps of Production Order

Processing

39 Unit 4: Creating Production Orders

40 Lesson: Creating Production Orders

43 Exercise 4: Convert A Planned Order

49 Unit 5: Executing Production Orders

50 Lesson: Releasing Production Orders

55 Exercise 5: Release a Production Order
59 Lesson: Posting Goods Issues for Production Orders
63 Exercise 6: Post Goods Issues for a Production Order
67 Lesson: Confirming Production Orders
71 Exercise 7: Confirm Operations of a Production Order
75 Lesson: Posting Goods Receipts for Production Orders
79 Exercise 8: Post the Goods Receipt for a Production Order

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vi © Copyright. All rights reserved.
Course Overview

TARGET AUDIENCE
This course is intended for the following audiences:
● Application Consultant
● Super / Key / Power User
● Business User

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viii © Copyright. All rights reserved.
 UNIT 1 Analyzing Master Data for
Discrete Manufacturing

Lesson 1
Analyzing Master Data for Discrete Manufacturing 2
Exercise 1: Analyze Master Data 7

UNIT OBJECTIVES

● Describe the Relevant Master Data for Production Orders

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 Unit 1
Lesson 1
Analyzing Master Data for Discrete
Manufacturing

LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Describe the Relevant Master Data for Production Orders

Master Data for Production Orders

Introduction
To illustrate the production processes in a company, we use the example of the Bike
Company. The company produces its own bicycles and maps the production processes in
SAP S/4HANA.
The Bike Company has designed a new bicycle model for the upcoming season. It's a special
model with a newly designed aerodynamic bike frame and light components for fast rides in
the city. The tests of the prototypes went well, so that the model can now be produced.
In this course, you will learn about the prerequisites for master data and the integration of
production orders with production planning. Then you will learn how to create production
orders, and finally, how to execute them. Let's start and get an understanding of the master
data!

Master Data for Production Orders

Before production can start, the Bike Company must first create master data in the SAP S/
4HANA system. This includes:
● Materials
● Bills of material
● Routings
● Work centers
● Production resources/tools (PRT)
● Production versions

Let's get to know the master data in more detail.

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 Lesson: Analyzing Master Data for Discrete Manufacturing

Note:
In this section, we will briefly recapitulate the most important concepts.
Additionally, you can also refer to the SAP Application Documentation: Material
Master, BOM, Routing, Work Center, Production Version , PRT.

Materials

Figure 1: Materials

Material master records must be created for the materials that are produced and procured in
a company. In our bicycle company, for example, material master records were created for
the finished bicycles for the required assemblies that are produced in-house, such as frames
or wheels, and for raw materials to be procured via purchasing, such as chains or metal tubes.
In the material master record of each item, planning data, procurement data, production
execution-relevant data, and so on, are maintained.
Bill of Material (BOM)

Figure 2: Bill of Material (BOM)

The material components required for finished products and assemblies are to be defined via
bills of materials (BOMs). The bill of material for a bicycle manufactured in our bicycle
company can, for example, consist of the material components frame, wheel, chain, and
further components. Assemblies, such as the frame of a bicycle themselves have a BOM,
which results in multi-level BOM structures.
You furthermore define, in a BOM, how many components are required to assemble a
product. For example, one bike requires the assembly of two wheels, front and rear wheel,
respectively.
The BOM is used in production planning to determine, for example, how many items of a
purchased raw material are required in a certain time frame. The system then compares the

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Unit 1: Analyzing Master Data for Discrete Manufacturing

amount of on-stock items to the required quantity and creates, if necessary, a purchase
requisition. In production execution, the SAP S/4HANA system uses the BOM in a production
order to determine how many items of a raw material are required to produce the requested
quantity. In our example, the production of 100 bicycles would require 200 wheels, 100
frames, and 100 chains.

Figure 3: Routing

Animation: Routing
For more information on Routing, please view the animation in the lesson
Analyzing Master Data for Discrete Manufacturing in your online course.

Routings define, in detail, which operations are to be carried out to manufacture a finished
product or an assembly. The master data specialist also defines the sequence in which the
individual operations must be executed. For example, a routing for the production of a bicycle
can consist of the operations: Pre-assembly, Assembly, and Quality Inspection that must be
executed in the sequence shown in the above figure.
A work center is assigned to each operation to define the physical location where this
operation is to be processed. By assigning a work center, you also specify costing- and
planning-relevant parameters for the individual operations since the master record of a work
center contains essential information that is used for capacity planning, scheduling, and
costing of production orders. In our example, the "pre-assembly" of the bike is executed at
work center assembly I, the operation "assembly" is executed at work center assembly II, and
so on.
Furthermore, production resources/tools (PRTs) can be assigned to an operation. A
production resource/tool assigned in the operation "assembly" can be, for example, a
document with detailed instructions illustrating the main assembly steps to the worker.

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 Lesson: Analyzing Master Data for Discrete Manufacturing

Figure 4: Production Version

A production order for a finished product or an assembly is always created with reference to a
production version of the corresponding material. A production version defines which routing
in combination with which bill of material is to be used for the production order. A suitable
production version is automatically selected when the order is created according to criteria
such as production quantity and production time.
Why do you need production versions in SAP S/4HANA? Let's consider the following
example: Depending on the number of bikes to be manufactured, the Bike Company has two
options to execute the manufacturing process. They can either use an automated assembly
line for high production quantities or a sequence of work centers where operators manually
execute the assembly process for smaller lot sizes. In the latter case, it does not make sense
to use the automated assembly line due to high setup times. However, the BOM is identical for
both production scenarios. To model this scenario in SAP S/4HANA, you can define two
production versions:
● Production version A combines the BOM for the bike with a routing where all operations
are executed on the work center 'Automated Assembly Line'. This production version is
used for lot sizes bigger than, for example, 1000 pc.
● Production version B combines the BOM for the bike with a routing where all operations
are executed on the manually operated work centers 'Pre-assembly', 'Assembly', and
'Quality Inspection'. This production version is used for lot sizes smaller than, for example,
1000 pc.

Display BOM, Production Version, and Multilevel BOM in SAP S/4HANA

Now that you're familiar with the essential master data needed for production orders, let's
move on to the next step: Learning how to see or display this data. In the following system
demonstration, you will get to know how to display a BOM, a production version, and a
multilevel BOM.

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Unit 1: Analyzing Master Data for Discrete Manufacturing

Video: Displaying BOM, Production Version, and Multilevel BOM

For more information on Displaying BOM, Production Version, and Multilevel
BOM, please view the video in the lesson Analyzing Master Data for Discrete
Manufacturing in your online course.

You are almost finished with displaying the relevant master data for production orders.
Finally, you will learn how to display the remaining master data, routing, and work center.

Video: Displaying Routing and Work Center

For more information on Displaying Routing and Work Center, please view the
video in the lesson Analyzing Master Data for Discrete Manufacturing in your
online course.

Note:
If you have access to the practice system, you can now do the exercise Analyze
Master Data.

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 Unit 1
Exercise 1
Analyze Master Data

Simulation: Analyze Master Data

For more information on Analyze Master Data, please view the simulation in the
lesson Analyzing Master Data for Discrete Manufacturing in your online course.

Business Scenario
Your company manufactures bicycles. As a production engineer, you will analyze the
corresponding master data.

Note:
In this exercise, when a value or object name contains ##, replace ## by the
number your trainer assigned to you.

Task 1: Analyze BOM Structure

You analyze the multilevel BOM structure of your finished product, T-FSP1## Bike Special.
There are no master data changes required!

1. Execute the Display Multilevel BOM Explosion app to analyze the multilevel BOM structure
of your finished product, T-FSP1## Bike Special.
In the initial screen, enter the following data:

Field Value

Material T-FSP1##

Plant 1010

Alternative BOM 1

BOM Application PP01

2. In the Display Multilevel BOM screen, check the multilevel BOM structure for material T-
FSP1##. Note the BOM structure in the following table:
Field Value

Material
Description
Base Qty (PC)

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Unit 1: Analyzing Master Data for Discrete Manufacturing

Level no. Component Object description Comp. Qty Unit Ict

number

.1
..2
..2
..2
...3
....4
....4
...3
.1
..2
..2
.1
.1

Close the Display Multilevel BOM screen.

3. Execute the Display Bill of Material app to display the BOM of material, T-FSP1##.
In the initial screen, enter the following data:

Field Value

Material T-FSP1##

Plant 1010

BOM Usage 1

Alternative BOM 1

4. In the Display Material BOM: General Item Overview screen, review the components of the
BOM and complete the following table.

Table 1: BOM Structure of T-FSP1##

Component Quantity
>
>
>

Task 2: Analyze Routing

You analyze the routing for your finished product, T-FSP1##. There are no master data
changes required!

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 Lesson: Analyzing Master Data for Discrete Manufacturing

1. Execute the Display Routing app to display the routing for material, T-FSP1##.
In the Display Routing: Initial Screen, enter the following data:

Field Value

Material T-FSP1##

Plant 1010

2. In the Display Routing: Operation Overview screen, note some information on the
operations in the following table:
Operation Work center Control key PRT

>
>
>

3. Now, select operation 0010 in the Operation Overview table and choose Detail to display
the Operation Details screen. Write down the Setup, Machine, and Labor time elements.

Table 3: Time Elements of the First Operation

Time Element Time
Setup
Machine
Labor

Task 3: Analyze Stocks and Post Goods Receipts for Material Components
In the following exercises, we assume that the stocks of the material components required to
produce the finished product, T-FSP1##, have been procured in sufficient quantities.
You check the stocks of the material components and fill them up to 2000 PC each.

1. Execute the Stock – Single Material tile to analyze the stocks of the material components:
T-SSP1##, T-SSP2##, and T-RSP1##, respectively. How many items are available in plant
1010 at storage location 101B of each material?
Note down the available quantities: T-SSP1## (_____ pc), T-SSP2## (_____ pc), T-
RSP1## (_____ pc).

2. Now, create a goods receipt for the materials so that 2000 pc of each component are
available.

Result
You created goods receipts for the three materials: T-SSP1##, T-SSP2##, and T-RSP1## so
that the following exercises can be executed.

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 Unit 1
Solution 1
Analyze Master Data

Simulation: Analyze Master Data

For more information on Analyze Master Data, please view the simulation in the
lesson Analyzing Master Data for Discrete Manufacturing in your online course.

Business Scenario
Your company manufactures bicycles. As a production engineer, you will analyze the
corresponding master data.

Note:
In this exercise, when a value or object name contains ##, replace ## by the
number your trainer assigned to you.

Task 1: Analyze BOM Structure

You analyze the multilevel BOM structure of your finished product, T-FSP1## Bike Special.
There are no master data changes required!

1. Execute the Display Multilevel BOM Explosion app to analyze the multilevel BOM structure
of your finished product, T-FSP1## Bike Special.
In the initial screen, enter the following data:

Field Value

Material T-FSP1##

Plant 1010

Alternative BOM 1

BOM Application PP01

a) Enter the values given in the table and choose Execute.

2. In the Display Multilevel BOM screen, check the multilevel BOM structure for material T-
FSP1##. Note the BOM structure in the following table:
Field Value

Material
Description

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 Lesson: Analyzing Master Data for Discrete Manufacturing

Field Value

Base Qty (PC)

Level no. Component Object description Comp. Qty Unit Ict

number

.1
..2
..2
..2
...3
....4
....4
...3
.1
..2
..2
.1
.1

Close the Display Multilevel BOM screen.

a) You should see the following BOM structure:
Field Value

Material T-FSP1##
Description Bike Special
Base Qty (PC) 1

Level no. Component Object description Comp. Qty Unit Ict

number

.1 T-SSP1## Frame 1 PC L
..2 T-RSP5## Metal Tube 1 PC L
..2 T-RSP6## Seat Metal Tube 1 PC L
..2 T-SSP3## Bike Paint Red 0,1 L L
...3 T-SPT1## Basic Paint 0,1 L L
....4 T-RPT3## Basic Paint Mix 0,01 KG L
....4 T-RPT4## Solvent Mix 0,1 L L

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Unit 1: Analyzing Master Data for Discrete Manufacturing

Level no. Component Object description Comp. Qty Unit Ict

number

...3 T-RPT2## Pigment Red 0,01 KG L

.1 T-SSP2## Wheel 2 PC L
..2 T-RSP7## Rim with Spokes 2 PC L
..2 T-RSP8## Tyre and Tube 2 PC L
.1 T-RSP1## Chain 1 PC L
.1 T-DSP100 Bike Standard Assembly 1 PC D
Instruction

b) Close the Display Multilevel BOM tab.

3. Execute the Display Bill of Material app to display the BOM of material, T-FSP1##.
In the initial screen, enter the following data:

Field Value

Material T-FSP1##

Plant 1010

BOM Usage 1

Alternative BOM 1

a) Enter the values given in the table and choose Enter.

4. In the Display Material BOM: General Item Overview screen, review the components of the
BOM and complete the following table.

Table 1: BOM Structure of T-FSP1##

Component Quantity
>
>
>

a) The following BOM items are defined:

Table 2: BOM Structure of T-FSP1##

Component Quantity
T-SSP1## (Frame) 1 pc
T-SSP2## (Wheel) 2 pc
T-RSP1## (Chain) 1 pc

b) Close this tab.

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 Lesson: Analyzing Master Data for Discrete Manufacturing

Task 2: Analyze Routing

You analyze the routing for your finished product, T-FSP1##. There are no master data
changes required!

1. Execute the Display Routing app to display the routing for material, T-FSP1##.
In the Display Routing: Initial Screen, enter the following data:

Field Value

Material T-FSP1##

Plant 1010

a) Enter the values given in the table and choose Continue.

2. In the Display Routing: Operation Overview screen, note some information on the
operations in the following table:
Operation Work center Control key PRT

>
>
>

a) You should find the following information:

Operation Work center Control key PRT

0010 T-BK1## YBP1

0020 T-BK2## YBP1 X
0030 T-BK3## YBP1

3. Now, select operation 0010 in the Operation Overview table and choose Detail to display
the Operation Details screen. Write down the Setup, Machine, and Labor time elements.

Table 3: Time Elements of the First Operation

Time Element Time
Setup
Machine
Labor

a) The following time elements are defined for operation 0010:

Table 4: Time Elements of the First Operation

Time Element Time
Setup 30 min

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Unit 1: Analyzing Master Data for Discrete Manufacturing

Time Element Time

Machine 15 min
Labor 15 min

b) Close the tab.

Task 3: Analyze Stocks and Post Goods Receipts for Material Components
In the following exercises, we assume that the stocks of the material components required to
produce the finished product, T-FSP1##, have been procured in sufficient quantities.
You check the stocks of the material components and fill them up to 2000 PC each.

1. Execute the Stock – Single Material tile to analyze the stocks of the material components:
T-SSP1##, T-SSP2##, and T-RSP1##, respectively. How many items are available in plant
1010 at storage location 101B of each material?
Note down the available quantities: T-SSP1## (_____ pc), T-SSP2## (_____ pc), T-
RSP1## (_____ pc).
a) Open the Stock - Single Material app.

b) In the field Material, enter T-SSP1## and choose Enter.

c) You find the available quantity in column, Unrestricted-Use stock. The actual quantity
depends.

2. Now, create a goods receipt for the materials so that 2000 pc of each component are
available.
a) Select line item: Std. Storage 2 101B.

b) Choose Manage stock.

c) In column Unrestricted-use Stock, choose the icon to the right of the available quantity
(the icon shows an arrow pointing upwards).

d) In the field Quantity, enter the quantity that is missing so that 2000 pc are available in
total. If 110 pc were available in the first step, enter 1890, tab out of the field, and
choose Post.

e) Confirm the Success message.

f) Change the entry in the field, Material (T-SSP2## or T-RSP1##), choose Enter, and
execute substeps c-e to create goods receipts for the remaining two materials.

Result
You created goods receipts for the three materials: T-SSP1##, T-SSP2##, and T-RSP1## so
that the following exercises can be executed.

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 Lesson: Analyzing Master Data for Discrete Manufacturing

LESSON SUMMARY
You should now be able to:
● Describe the Relevant Master Data for Production Orders

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Unit 1: Analyzing Master Data for Discrete Manufacturing

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 Unit 1

Learning Assessment

1. Which of the following statements regarding master data for production orders is
correct?
Choose the correct answers.

X A A production version defines which PRTs in combination with which work centers
are to be used for the production order.

X B Routings define in detail the operations to be carried out to manufacture a finished

product or an assembly.

X C The material components and documents required for finished products and
assemblies are to be defined via routings.

X D Production resources/tools (PRTs) can be assigned to material components.

X E In the master record of a work center, essential information is defined that is

required for capacity planning, scheduling, and costing of production orders.

2. In the context of production, for which material types must you create material master
records?
Choose the correct answers.

X A Finished products

X B Semi-finished products

X C Raw materials

X D Office supplies

3. Which of the following information do you define in a BOM?

Choose the correct answers.

X A Components to be assembled

X B Component quantities

X C Manufacturing operations

X D Work centers where the manufacturing operations are executed

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Unit 1: Learning Assessment

4. Which of the following information do you define in a routing?

Choose the correct answers.

X A Components to be assembled

X B Component quantities

X C Manufacturing operations

X D Work centers where the manufacturing operations are executed

5. Which of the following elements do you reference in a production version?

Choose the correct answers.

X A BOM

X B Routing

X C Work center

X D Work center capacity

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 UNIT 2 Applying the Integration with
Production Planning

Lesson 1
Applying the Integration with Production Planning 20
Exercise 2: Assign your Area of Responsibility 23
Exercise 3: Create Planned Independent Requirements, and Run MRP 25

UNIT OBJECTIVES

● Apply the Integration with Production Planning

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 Unit 2
Lesson 1
Applying the Integration with Production
Planning

LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Apply the Integration with Production Planning

Business Process Overview: From Planning to Order Execution

Production Order Definition
A production order generally defines which material is to be produced in which quantity, at
which time, and in which way.
In our business example, production orders are used to initiate and control the production of
the bicycles in our bicycle company. The individual production orders define the following
information:
● Which types of bicycles are to be produced?
● Which quantities are to be produced?
● When will the bicycles be produced to meet customer orders or other requirement dates?
● Which material components are required?
● Which operations are to be carried out at which work centers?

Integration of Production Orders

Production orders can either derive from planned independent requirements, or from sales
orders.
Watch the next video to learn more about these 2 possibilities and the overall integration of
production orders.

Video: Integrating Production Orders

For more information on Integrating Production Orders, please view the video in
the lesson Applying the Integration with Production Planning in your online
course.

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 Lesson: Applying the Integration with Production Planning

Figure 5: Integrating Production Orders

The in-house production process starts with the definition of a demand program. There are
two basic planning strategies: make-to-stock production and make-to-order production. In
the case of make-to-stock production, planned independent requirements are created based
on forecasts; in the case of make-to-order production, sales orders are created in Sales. In
our bicycle company, both planning strategies are used. Bicycles with a relatively constant,
predictable sales volume are produced in make-to-stock production, while more expensive
special bicycles that require a more complex production process are produced in make-to-
order production.
The stock and requirements situation for materials is checked regularly in material
requirements planning (MRP). In case of shortage situations, planned orders are created to
cover the planned independent requirements and sales orders. In our bicycle company, an
MRP run is usually carried out once a day.
Close to the time of production, the planned orders are then converted into production
orders. While planned orders represent planned receipts of MRP that can be dynamically
adjusted by the regular planning runs, production orders contain detailed instructions for
production on how to manufacture the materials and can no longer be automatically changed
by MRP. In our bicycle company, planned orders due are converted into production orders
once a day in background processing.
Order execution includes steps such as staging the required material components and
confirming the processed operations. The goods receipts of the finished products in inventory
management complete the order processing for production.

Maintain Planned Independent Requirements

As you have seen above, the demand program for a material either originates from concrete
sales orders, from a forecast based on previous sales cycles, or from a combination of both.
In this training, we solely focus on a make-to-stock production scenario for our bike.
Therefore, the production planner only needs to maintain the demand program in the form of
planned independent requirements. Individual sales orders are not taken into account.

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Unit 2: Applying the Integration with Production Planning

Note:
From a production execution point of view, it does not matter whether production
orders are executed in a make-to-stock or make-to-order scenario.

After having maintained planned independent requirements, they are processed by the MRP
run to generate planned orders.
In the following demonstration, you will see how planned independent requirements are
maintained by the production planner.

Video: Maintaining Planned Independent Requirements

For more information on Maintaining Planned Independent Requirements, please
view the video in the lesson Applying the Integration with Production Planning in
your online course.

Monitor Material Coverage, Execute MRP Run, and Analyze Planning Result
Proposed sales quantities for, for example, make-to-stock manufacturing of bikes, are
maintained as planned independent requirements. The system compares the requirements
and the stock evaluation over time and determines whether the requirement is covered or
not. If the requirements are covered from stock, planned orders or production orders that
already exist, the MRP run does not create additional planned orders. If the requirements are
not covered, the MRP run generates planned orders that can be converted into production
orders to manufacture the missing quantities, for example, bikes.
In the next demonstration, you will learn how to execute the MRP run and compare the
material coverage situation before and after the MRP run.

Video: Monitoring Material Coverage

For more information on Monitoring Material Coverage, please view the video in
the lesson Applying the Integration with Production Planning in your online
course.

Note:
If you have access to a practice system, you can now execute the exercises Assign
your Area of Responsibility and Create Planned Independent Requirements, and
Run MRP.

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 Unit 2
Exercise 2
Assign your Area of Responsibility

Simulation: Assign your Area of Responsibility

For more information on Assign your Area of Responsibility, please view the
simulation in the lesson Applying the Integration with Production Planning in your
online course.

Business Scenario
You must assign your area of responsibility in order to use certain apps in requirements and
capacity planning.

Note:
In this exercise, when a value or object name contains ##, replace ## by the
number your trainer assigned to you.

1. Execute the My Area of Responsibility - MRP Controller to assign your MRP controller,
P##, in plant 1010.

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 Unit 2
Solution 2
Assign your Area of Responsibility

Simulation: Assign your Area of Responsibility

For more information on Assign your Area of Responsibility, please view the
simulation in the lesson Applying the Integration with Production Planning in your
online course.

Business Scenario
You must assign your area of responsibility in order to use certain apps in requirements and
capacity planning.

Note:
In this exercise, when a value or object name contains ##, replace ## by the
number your trainer assigned to you.

1. Execute the My Area of Responsibility - MRP Controller to assign your MRP controller,
P##, in plant 1010.
a) Open the app.

b) In the field Plant, enter 1010

c) In the field MRP Controller, enter P## and choose Go.

d) In the AOR Status column, choose the slider so that it shows a green check mark. The
system issues a confirmation AOR Assigned.

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 Unit 2
Exercise 3
Create Planned Independent Requirements,
and Run MRP

Simulation: Create Planned Independent Requirements, and Run MRP

For more information on Create Planned Independent Requirements, and Run
MRP, please view the simulation in the lesson Applying the Integration with
Production Planning in your online course.

Business Scenario
Based on sales forecasts, a planner specifies requirements for the make-to-stock (MTS)
production of the bicycles. An MRP controller schedules an MRP run, checks the result, and
converts planned orders to production orders.

Note:
In this exercise, when a value or object name contains ##, replace ## by the
number your trainer assigned to you.

Task 1: Create Planned Independent Requirements

As a planner, you create planned independent requirements for the finished product, T-
FSP1## Bike Special.
Previously, you set up a preferred planning strategy for make-to-stock production in the
material master.

1. Execute the Change Material app to set up the make-to-stock planning strategy 40
Planning with final assembly for your finished product, T-FSP1## Bike Special on tab MRP
3 for plant 1010.

2. Execute the Maintain PIRs tile to create planned independent requirements for your
finished product, T-FSP1## Bike Special. Starting from the current week + 2 until the
current week + 10, enter requirements of 30 pc for each week. Activate the requirements.

Result
You maintained planned independent requirements so that you can execute the MRP run and
create planned orders.

Task 2: Run MRP

As an MRP controller, you start an MRP run for your finished material, T-FSP1##.

1. Execute the Monitor Material Coverage app to check the stock availability for the materials
T-FSP1## and the components T-SSP1##, T-SSP2##, and T-RSP1##.

2. Analyze the situation for the finished good, T-FSP1##.

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Unit 2: Applying the Integration with Production Planning

3. Analyze the situation for the component, T-RSP1##.

4. Return to the Stock/Requirements List for product, T-FSP1##, and choose Start MRP
Run.

5. Analyze the situation for the finished good, T-FSP1##.

6. Analyze the situation for the component, T-RSP1##.

Result
You successfully executed the MRP run and created planned order for the planned
independent requirements of the finished material, T-FSP1##. On component level, the
creation of planned orders triggered the creation of dependent requirements. As there is
enough stock available, the latter can be fulfilled by quantity on stock.,

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 Unit 2
Solution 3
Create Planned Independent Requirements,
and Run MRP

Simulation: Create Planned Independent Requirements, and Run MRP

For more information on Create Planned Independent Requirements, and Run
MRP, please view the simulation in the lesson Applying the Integration with
Production Planning in your online course.

Business Scenario
Based on sales forecasts, a planner specifies requirements for the make-to-stock (MTS)
production of the bicycles. An MRP controller schedules an MRP run, checks the result, and
converts planned orders to production orders.

Note:
In this exercise, when a value or object name contains ##, replace ## by the
number your trainer assigned to you.

Task 1: Create Planned Independent Requirements

As a planner, you create planned independent requirements for the finished product, T-
FSP1## Bike Special.
Previously, you set up a preferred planning strategy for make-to-stock production in the
material master.

1. Execute the Change Material app to set up the make-to-stock planning strategy 40
Planning with final assembly for your finished product, T-FSP1## Bike Special on tab MRP
3 for plant 1010.
a) Open the app.

b) In the field Material, enter T-FSP1## and choose Continue.

c) In the window, Select View(s), select MRP 3 and choose Continue.

d) In the window, Organizational Levels, enter in the field, Plant, 1010 and choose
Continue.

e) On the MRP 3 tab, in the field, Strategy Group, enter 40 and choose Save.

2. Execute the Maintain PIRs tile to create planned independent requirements for your
finished product, T-FSP1## Bike Special. Starting from the current week + 2 until the
current week + 10, enter requirements of 30 pc for each week. Activate the requirements.
a) Open the app.

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Unit 2: Applying the Integration with Production Planning

b) In the Maintain PIRs screen, enter the following data and choose Go:
Field Value

Material T-FSP1##

Plant 1010

Period Indicator Weekly (W)

Version Active N/A

c) Select the line item checkbox for material, T-FSP1##, and choose Create. Do not click
on the line item!

d) Confirm the Create PIRs pop-up by choosing Create and Edit.

e) In the Maintain Quantities per Period table, maintain the following entries:
Period Draft PIRs

Actual week 0

Actual week +1 week 0

Actual week + 2 weeks 30

Actual week + 3 weeks 30

Actual week + 4 weeks 30

Actual week + 5 weeks 30

Actual week + 6 weeks 30

Actual week + 7 weeks 30

Actual week + 8 weeks 30

Actual week + 9 weeks 30

Actual week + 10 weeks 30

f) In the Version Active column, move the control NO to YES.

g) Choose Save.

Result
You maintained planned independent requirements so that you can execute the MRP run and
create planned orders.

Task 2: Run MRP

As an MRP controller, you start an MRP run for your finished material, T-FSP1##.

1. Execute the Monitor Material Coverage app to check the stock availability for the materials
T-FSP1## and the components T-SSP1##, T-SSP2##, and T-RSP1##.
a) Open the app.

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 Lesson: Applying the Integration with Production Planning

b) Select the line items for materials, T-FSP1##, T-SSP1##, T-SSP2##, and T-RSP1##,
and choose Manage Materials.

2. Analyze the situation for the finished good, T-FSP1##.

a) There is no stock for this material available. There are nine planned independent
requirements for the first work day of each week from this week + 2 until this week + 9.
There are no planned orders.

3. Analyze the situation for the component, T-RSP1##.

a) Choose T-RSP1## on the left side of the screen.

b) There are 2000 pc of this material on stock. There are no dependent requirements.

4. Return to the Stock/Requirements List for product, T-FSP1##, and choose Start MRP
Run.
a) Choose T-FSP1## on the left side of the screen.

b) Choose Start MRP Run.

5. Analyze the situation for the finished good, T-FSP1##.

a) There is no stock for this material available. There are nine planned independent
requirements for the first work day of each week from this week + 2 until this week + 9.
There is a corresponding planned order for each planned independent requirement.

6. Analyze the situation for the component, T-RSP1##.

a) There are 2000 pc of this material on stock. For each planned order of the finished
material, there is a dependent requirement.

Result
You successfully executed the MRP run and created planned order for the planned
independent requirements of the finished material, T-FSP1##. On component level, the
creation of planned orders triggered the creation of dependent requirements. As there is
enough stock available, the latter can be fulfilled by quantity on stock.,

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Unit 2: Applying the Integration with Production Planning

LESSON SUMMARY
You should now be able to:
● Apply the Integration with Production Planning

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 Unit 2

Learning Assessment

1. Which information is available in a production order?

Choose the correct answers.

X A Quantities to be produced

X B Required components

X C Planned independent requirement that triggered the order

X D Planned time window for production execution

X E Specifications how to execute the goods receipt inspection from production

2. In a make-to-stock scenario, which item do you maintain in the SAP S/4HANA system to
trigger the creation of planned orders?
Choose the correct answer.

X A Sales orders

X B Planned independent requirements

X C Purchase requisitions

3. What are possible results of the MRP run?

Choose the correct answer.

X A Production orders

X B Process orders

X C Planned orders

X D Purchase orders

© Copyright. All rights reserved. 31

Unit 2: Learning Assessment

32 © Copyright. All rights reserved.

 UNIT 3 Describing the Lifecycle of a
Production Order

Lesson 1
Executing the Various Steps of Production Order Processing 35

UNIT OBJECTIVES

● Execute the Various Steps of Production Order Processing

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Unit 3: Describing the Lifecycle of a Production Order

34 © Copyright. All rights reserved.

 Unit 3
Lesson 1
Executing the Various Steps of Production
Order Processing

LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Execute the Various Steps of Production Order Processing

Order Processing
The Bike Company has prepared the necessary master data and the planned orders were
handed over from production planning. Now it's time for production execution. During order
execution, a production order goes through many steps.
Watch the following video to get an overview of the individual steps. In the following units, you
will get to know the most important processing steps in more detail.

Video: Processing Production Orders

For more information on Processing Production Orders, please view the video in
the lesson Executing the Various Steps of Production Order Processing in your
online course.

Figure 6: Processing Production Orders

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Unit 3: Describing the Lifecycle of a Production Order

Production order goes through many different steps in its lifecycle. The main steps in order
processing are order creation, order release, goods issues, confirmations, and goods
receipts. In principle, a production order can be created in many ways, whereby order
creation by planned order conversion is typical. When an order is created, the required
master data is selected, and the order is scheduled. A corresponding status 'created' is
set. With a status created, an order cannot be processed in production, for example, goods
movements and confirmations cannot be posted. When an order is released, it is made
available to production for processing. A corresponding status 'released' is set. In the release
status, goods issues, confirmations, and goods receipts can now be posted, to name a few
examples. By posting goods issues and material components to production orders, the
corresponding material consumption is recorded and stock quantities and stock values are
decreased. By posting goods receipts for the finished products, the corresponding production
quantities are documented and stock quantities and stock values of the products are
increased.
In between the main steps, the system offers various supporting functions, for example,
availability checks, capacity evaluation and leveling, download to process control, order
printing, material staging, and upload from process control. Between order creation and order
release, you execute various checks ensuring that the order can be correctly
processed. Material availability checks are used to ensure that the required
material components are available in the required quantity at the required time. Capacity
evaluation and capacity leveling are used to ensure that the work centers required in
production are not overloaded, and are used as efficiently as possible. For paper-based
production processes, various order-related documents, for example, goods issue slips,
confirmation slips, and PRT lists, can be printed after order release. In many companies,
manufacturing execution systems are used to orchestrate the flow of the order on the shop
floor. In this case, order information is downloaded from the SAP S4/HANA system to the
process control system and actual data. For example, material consumption and confirmation
data is uploaded in the opposite direction. Before the goods issue postings to the production
order are possible, it might be required that the material components must be staged from a
central storage location to the production storage location.

LESSON SUMMARY
You should now be able to:
● Execute the Various Steps of Production Order Processing

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 Unit 3

Learning Assessment

1. Which of the following statements regarding the execution of a production order are
correct?
Choose the correct answers.

X A By goods receipt postings for the finished products the corresponding production
quantities are documented and stock quantities and stock values of the products are
increased.

X B Quantities, activities, and time information can be confirmed.

X C The main steps in order processing are material requirements planning, capacity
leveling, goods issues, quality inspections, and goods receipts.

X D Material availability checks are intended to ensure that the work centers required
in production are not overloaded.

2. Which of the following processes can you execute for a production order in status
created?
Choose the correct answers.

X A Material availability checks

X B Goods issue

X C Goods receipt

X D Confirmations

X E Capacity evaluation

© Copyright. All rights reserved. 37

Unit 3: Learning Assessment

3. Which of the following processes can you only execute after a production order was
released?
Choose the correct answers.

X A Material availability checks

X B Goods issue

X C Goods receipt

X D Confirmations

X E Capacity evaluation

4. Which of the following statements about capacity evaluation and leveling is correct?
Choose the correct answer.

X A Capacity evaluation and leveling are intended to ensure that the work centers
required in production are not overloaded.

X B Capacity evaluation and leveling are intended to ensure that the required material
components are available in the required quantity at the required time.

X C Capacity evaluation and leveling is executed automatically when you create a

production order.

5. Which of the following statements about material availability checks is correct?

Choose the correct answer.

X A Material availability checks are intended to ensure that the work centers required
in production are not overloaded.

X B Material availability checks are intended to ensure that the required material
components are available in the required quantity at the required time.

X C Material availability checks are executed automatically when you create a

production order.

38 © Copyright. All rights reserved.

 UNIT 4 Creating Production Orders

Lesson 1
Creating Production Orders 40
Exercise 4: Convert A Planned Order 43

UNIT OBJECTIVES

● Create Production Orders

© Copyright. All rights reserved. 39

 Unit 4
Lesson 1
Creating Production Orders

LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Create Production Orders

Planned Order Conversion

Current Process Step

Figure 7: Order Creation

As already described in the previous unit, planned orders are created by material
requirements planning as planned material receipts to cover requirements. In the case of in-
house production, planned orders are then converted into production orders close to the time
of production. In this unit, we will discuss which methods the Bike Company can use to
convert planned orders to production orders.

Planned Order Conversion Options

There are 2 options to convert planned orders into production orders: The collective
conversion and the individual conversion. Let's take a closer look at these 2 options:

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 Lesson: Creating Production Orders

Figure 8: Production Order Creation by Planned Order Conversion

In most cases, multiple planned orders are converted into production orders at the same
time. Based on the Bike Company's business requirements, they can convert planned orders
into production orders using collective conversion. During conversion, the system converts
each planned order into exactly one production order (resulting in n production orders for n
planned orders). To select planned orders to be converted, you can specify various selection
criteria, for example plant, MRP controller, opening date, material, and so on.
Alternatively, the MRP controller from the Bike Company can manually convert one planned
order into one production order using individual conversion or even create several production
orders from one planned order by means of partial conversion (for example, if the
manufacturing resources are not available due to unplanned events or if there is a component
shortage). When converting one planned order, it is deleted and replaced by the production
order.
On component level, dependent requirements are replaced by reservations once the planned
order was converted into a production order.

Note:
You can, at any time, also manually create production orders, for example in the
case of urgent, unplanned orders such as repairs or customer order. In this case,
material, quantity, and date must be entered manually when creating the order.
For additional information about manual order creation, refer to the SAP Help
Portal. To obtain more information about planned order conversion, review this
section of the SAP Application Assistance.

Time-Oriented Collective Conversion

When converting planned orders to production orders, you usually convert the planned orders
that are due for production in the near future to production orders. This process is called
time-oriented collective conversion.
Watch the following video for more details:

© Copyright. All rights reserved. 41

Unit 4: Creating Production Orders

Video: Understanding Time-Oriented Collective Conversion

For more information on Understanding Time-Oriented Collective Conversion,
please view the video in the lesson Creating Production Orders in your online
course.

Figure 9: Time-Oriented Collective Conversion

When scheduling a planned order, a start date, a finished date, and a planned opening date
are determined. The planned opening date represents the date on which the planned order
should be converted into a production order. In collective conversion, you can specify an
opening period for selecting planned orders that are due for conversion. All planned orders
whose planned open opening date lies within the specified opening period are converted. In
this example, the opening date of the first and second planned order lie within the opening
period and are therefore converted. The third planned order will be converted at a later point
in time when it becomes relevant for production.

Convert a Planned Order into a Production Order

For the sake of simplicity, we will show how you convert an individual planned order in the SAP
S/4HANA system and the effect of order conversion.

Video: Converting Planned Orders into Production Orders

For more information on Converting Planned Orders into Production Orders,
please view the video in the lesson Creating Production Orders in your online
course.

Note:
If you have access to a practice system, you can now execute the exercise Convert
a Planned Order.

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 Unit 4
Exercise 4
Convert A Planned Order

Simulation: Convert A Planned Order

For more information on Convert A Planned Order, please view the simulation in
the lesson Creating Production Orders in your online course.

As an MRP controller, you convert the next planned order into a production order and analyze
the production order from an MRP point of view.

1. Execute the Monitor Material Coverage app and convert the first planned order for the T-
FSP1## material to a production order. Analyze the result of order conversion for the T-
RSP1## component.

Result
You converted the first planned order of the finished material, T-FSP1##, to a production
order.

© Copyright. All rights reserved. 43

 Unit 4
Solution 4
Convert A Planned Order

Simulation: Convert A Planned Order

For more information on Convert A Planned Order, please view the simulation in
the lesson Creating Production Orders in your online course.

As an MRP controller, you convert the next planned order into a production order and analyze
the production order from an MRP point of view.

1. Execute the Monitor Material Coverage app and convert the first planned order for the T-
FSP1## material to a production order. Analyze the result of order conversion for the T-
RSP1## component.
a) Open the app.

b) Select the check box for line items corresponding to materials, T-FSP1## and T-
RSP1##, and choose Manage Materials.

c) In the section, Material Details, for material, T-FSP1##, select the drop-down in
column, Actions, for the first planned order. Note: The button shows Edit and a
chevron pointing downwards. Select the chevron!

d) Choose Convert.

e) In the window, Convert Planned Order <Order ID>, choose OK.

f) The planned order is replaced by a production order.

g) On the left side, select the component material, T-RSP1##.

h) In the section, Material Details, for material, T-RSP1##, there is one order reservation
(corresponding to the production order you created in step e) and eight dependent
reservations (for the remaining eight planned orders).

Result
You converted the first planned order of the finished material, T-FSP1##, to a production
order.

44 © Copyright. All rights reserved.

 Lesson: Creating Production Orders

LESSON SUMMARY
You should now be able to:
● Create Production Orders

© Copyright. All rights reserved. 45

Unit 4: Creating Production Orders

46 © Copyright. All rights reserved.

 Unit 4

Learning Assessment

1. If you convert one planned order, what is the result in the SAP S/4HANA system?
Choose the correct answer.

X A One purchase order

X B One production order

X C Multiple production orders

2. What happens in the SAP S/4HANA system if you convert a planned order?
Choose the correct answers.

X A The planned order is deleted and replaced by a production order.

X B The planned order is fixed and a production order is created.

X C The dependent requirements are replaced by component reservations.

X D If components are missing, the system automatically creates purchase

requisitions if you convert a planned order.

3. Which information must you provide if you manually create a production order?
Choose the correct answers.

X A Material to be manufactured

X B Quantity to be manufactured

X C Required components

X D Routing to be used

© Copyright. All rights reserved. 47

Unit 4: Learning Assessment

4. How do you define time-oriented collective conversion?

Choose the correct answer.

X A You convert planned orders into production orders at the beginning of each
quarter.

X B You create a list of planned orders at the beginning of each week and manually
convert them to production orders.

X C You convert planned orders into production orders that are due for production in
the near future.

5. Which options does the SAP S/4HANA system offer to create production orders?
Choose the correct answers.

X A You can mass-convert planned orders to production orders.

X B You can automatically create a production order if the supplier confirms your
purchase order for required raw materials.

X C You can partially convert planned orders to production orders.

X D You can manually create production orders.

X E You can automatically create production orders by executing the MRP run.

48 © Copyright. All rights reserved.

 UNIT 5 Executing Production Orders

Lesson 1
Releasing Production Orders 50
Exercise 5: Release a Production Order 55

Lesson 2
Posting Goods Issues for Production Orders 59
Exercise 6: Post Goods Issues for a Production Order 63

Lesson 3
Confirming Production Orders 67
Exercise 7: Confirm Operations of a Production Order 71

Lesson 4
Posting Goods Receipts for Production Orders 75
Exercise 8: Post the Goods Receipt for a Production Order 79

UNIT OBJECTIVES

● Release Production Orders for Execution

● Post Goods Issues for Production Orders
● Confirm Production Orders
● Post Goods Receipts

© Copyright. All rights reserved. 49

 Unit 5
Lesson 1
Releasing Production Orders

LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Release Production Orders for Execution

Order Release
Current Process Step
The next step in the lifecycle of a production order is the order release. From a business
perspective, the Bike Company releases orders that are ready for production execution. This
means that, for example, all required components are available (→ availability checks) and
the manufacturing resources have enough free capacity to execute the order(s) as planned
(→ capacity evaluation and leveling). As you can see in the figure, order release is usually
executed after availability checks and/or capacity evaluation were performed.

Figure 10: Order Release

What happens during availability check? As discussed in chapter Business Process Overview:
From Planning to Order Execution, you assemble components to manufacture a product. In
our bike example, frames, wheels, chains, and so on, are assembled to the Special Bike. These
components must be available at the production site. In a nutshell, the availability check in
SAP S/4HANA compares the quantity of a component that is required by a production order
to the, for example, available quantity of a component. If there is enough to be used, the
availability check is positive and the production order can be executed. If there is a

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 Lesson: Releasing Production Orders

component shortage, the system informs the user accordingly and the production order
cannot be executed. In this case, additional components must be procured or components
from other, less important orders must be reallocated to this production order to be able to
execute this order.

Note:
For more information about missing parts and the availability check, refer to the
SAP Help Portal.

What happens during capacity evaluation? Similar to component checks, the manufacturing
resources, for example, an assembly line, must have enough free capacity so that an order
operation can be executed on that resource. Capacity evaluation compares the capacity
offered by a work center to the capacity required by an operation. If there is enough capacity,
you can execute the order as planned. Otherwise, the production supervisor must reschedule
orders that are currently allocated to this machine so that enough free capacity is available to
execute the order in question.
After component availability checks and capacity evaluation is done, you release the order. It
is only then that the subsequent processing steps, such as order printing, goods issue
postings, confirmations, and goods receipt postings can be executed in the SAP S/4HANA
system. From a technical point of view, releasing the order corresponds to a status change
from created to released: Only after this status change, you can execute the subsequent
processing steps.
If the SAP S/4HANA system is configured accordingly, the shop order papers are
automatically printed upon order release. Shop order papers might be required to process an
order if your company does not leverage a paperless production process, for example, using a
manufacturing execution system. Some examples of shop order papers are:
● Time tickets or confirmation slips: With these documents, the shop floor personnel
documents their efforts.
● Pull list or material withdrawal list: With these documents, the shop floor personnel are
informed about the components that shall be assembled. Sometimes, warehouse
personnel use these documents to execute material stating.
● Object overview: Using this list, shop floor personnel gets an overview over the entire
order. From a business perspective, you would usually use this document as a process slip
that accompanies the order through the entire production process.

Note:
For more information about shop order papers, refer to the SAP Help Portal.

Finally, the lifecycle image shows the optional step, download to process control: You use this
functionality in SAP S/4HANA if you execute your production process leveraging a
manufacturing execution system (MES), for example, SAP Digital Manufacturing or any other
third party MES. After order release, the order and related data is transferred to the MES that
takes over execution from that point in time. During production execution, workers interact
with the MES by confirming produced quantities, efforts, component consumptions, etc.
Afterward, the MES transfers this data back to the SAP S/4HANA system (upload from
process control) to ensure that data across systems is consistent.

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Unit 5: Executing Production Orders

Order Release Options

The SAP S/4HANA system offers various options to release one or more production orders.
From a business perspective, order or operation release informs your manufacturing
personnel that the order/operation can now be executed as specified in the order. In our Bike
Company, a released order for 100 Special Bikes triggers the production of the respective
quantity. Review the following two figures for more information:

Figure 11: Order Release Options: Step 1

You must first decide whether you want to release an entire production order or individual
operations of one order. If you release the entire order, the operations in the order are
automatically released. If you release individual operations of one order, you must also
respect the sequence of operations.
Usually, you release an entire order so that the shop floor personnel can smoothly execute a
production order without additional system constraints. However, if you want to ensure that a
subsequent operation can only be executed after a previous operation was completed, you
release the individual operations of an order one after the other. From a business perspective,
you typically choose the latter approach for complex orders (with many operations) that
require that the sequence of operations is strictly followed.

Figure 12: Order Release Options: Step 2

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 Lesson: Releasing Production Orders

Animation: Order Release Options

For more information on Order Release Options, please view the animation in the
lesson Releasing Production Orders in your online course.

Individual Release
When individually releasing orders or operations, you manually release each object
individually in the system. For example, if an express order is received from a customer and
you immediately want to start production of the requested product, you manually create the
express order and directly release it so that the requested product can be immediately
produced.
Collective Release
Usually, you don't release orders or operations individually since a high manual effort is
required. Instead, you select several orders and release them collectively, for example, using
the Manage Production Orders app. To select production orders to be released, you can
specify various selection criteria, for example, plant, production scheduler, release date,
material, and so on. In our Bike Company example, all orders that are due for execution in the
next week are automatically released by the Production Supervisor in the week prior to
execution.

Note:
In principle, this approach corresponds to the time-oriented conversion of planned
orders which we discussed in a previous chapter.

Release Operations and Production Orders

You now know the different ways the Bike Company can release production orders. Let's see
how this works in SAP S/4HANA. In the following demonstration, you will learn how to release
individual and multiple operations of a production order. After that, you will see how to release
individual and multiple orders. Finally, you will learn how to release a production order with a
background job. To do so, you schedule an order release run.

Video: Releasing Operations and Production Orders

For more information on Releasing Operations and Production Orders, please
view the video in the lesson Releasing Production Orders in your online course.

Note:
If you have access to a practice system, you can now perform exercise Release a
Production Order.

© Copyright. All rights reserved. 53

Unit 5: Executing Production Orders

54 © Copyright. All rights reserved.

 Unit 5
Exercise 5
Release a Production Order

Simulation: Release a Production Order

For more information on Release a Production Order, please view the simulation
in the lesson Releasing Production Orders in your online course.

As a production supervisor, you release the production order for the finished product, T-
FSP## Bike Special, and review the operation status as well as the result of the component
availability check.

1. Use the Manage Production Orders app to analyze and release a production order for the
T-FSP1## material. When you start the app for the first time, you must specify as an area
of responsibility a combination of plant, 1010, and production supervisor, P##.

2. What is the current status of the order? __________________

3. Click in the line of the production order to proceed to the order details. Review the data on
the tabs, Order Information, Components, Order Schedule, and Confirmation. What is the
operation status? Have the quantities been committed?

4. Now, release the order and review the operation status and committed component
quantities.

Result
After releasing the order, all operations of the order are also released. The required
component quantities are now committed.

© Copyright. All rights reserved. 55

 Unit 5
Solution 5
Release a Production Order

Simulation: Release a Production Order

For more information on Release a Production Order, please view the simulation
in the lesson Releasing Production Orders in your online course.

As a production supervisor, you release the production order for the finished product, T-
FSP## Bike Special, and review the operation status as well as the result of the component
availability check.

1. Use the Manage Production Orders app to analyze and release a production order for the
T-FSP1## material. When you start the app for the first time, you must specify as an area
of responsibility a combination of plant, 1010, and production supervisor, P##.
a) Open the app.

b) When the system displays the Welcome pop-up, choose OK.

c) In the My Area of Responsibility - Production Supervisor screen, assign the AOR Status
for production supervisor P## in plant 1010.

d) Choose the Back button to navigate to the Manage Production Order screen.

2. What is the current status of the order? __________________

a) The order is currently in status Created as displayed in the column, Status.

3. Click in the line of the production order to proceed to the order details. Review the data on
the tabs, Order Information, Components, Order Schedule, and Confirmation. What is the
operation status? Have the quantities been committed?
a) In the list, Orders, choose the line item of the production order to navigate to the order
details.

b) On the application header, choose the tab, for example, Order Information, and review
the data.

c) On the application header, choose the tab, Order Schedule, and review the operation
status. All three operations are in status, Created, as shown in the column, Status.

d) On the application header, choose the tab, Components, and review the component
coverage. As indicated by the red status bar in the column, Coverage, the items have
not been committed, yet.

4. Now, release the order and review the operation status and committed component
quantities.
a) Choose Release.

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 Lesson: Releasing Production Orders

b) On the application header, choose the tab, Order Schedule, and review the operation
status. All three operations are in status, Released, as shown in the column, Status.

c) On the application header, choose the tab, Components, and review the component
coverage. As indicated by the green status bar in the column, Coverage, the items have
been committed now.

Result
After releasing the order, all operations of the order are also released. The required
component quantities are now committed.

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Unit 5: Executing Production Orders

LESSON SUMMARY
You should now be able to:
● Release Production Orders for Execution

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 Unit 5
Lesson 2
Posting Goods Issues for Production Orders

LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Post Goods Issues for Production Orders

Goods Issues
Current Process Step
Let's continue with the next step in the production process of our new bike. After order
release, goods issues are posted by the warehouse clerk or shop floor personnel. From an
inventory perspective, the number of components on stock is decreased. In our scenario, this
means that the bike components (for example frame, wheels, chains, etc.) are withdrawn
from the warehouse, the respective on stock quantity is decreased and the component
consumption is posted against the order.

Figure 13: Goods Issues

How do you know which components shall be withdrawn from inventory? When an order is
created, the system automatically determines the bill of material and creates a reservation for
all required material components in the required quantity. Each material component of the
order receives a separate item number within the reservation. You can only withdraw the
reserved materials from the warehouse if the operation to which the materials are assigned in
the order has already been released. For each reservation item, the following information is
available:

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Unit 5: Executing Production Orders

● Component material number

● Required quantity of the component
● Storage location where the component is stored in your plant (the system automatically
determines the storage location)

As you can see in the figure above, material staging might precede the goods issue posting:
This is a warehouse process that organizes the staging of a material from a central storage
location to your production storage location before you can post the goods issue in the
system, for example, if purchased components are delivered to the Bike Company's central
warehouse, but their shop floor corresponds to a separate storage location in the SAP S/
4HANA system.

Goods Issue Posting Options

The Bike Company can use two methods for goods issue posting to a production order:
Manual or automatic. These two options are illustrated in the following image:

Figure 14: Options for Goods Issues Against a Production Order

Animation: Options for Goods Issues Against a Production Order

For more information on Options for Goods Issues Against a Production Order,
please view the animation in the lesson Posting Goods Issues for Production
Orders in your online course.

Assuming that the required component materials are already available at the production
storage location, 101B in our example, you can post a goods issue to a production order using
one of the following options:
● Manual goods issue posting, for example, using the Post Goods Movement or Pick
Components for Production Orders apps.
● Automatic goods issue posting together with the order confirmation, for example, using
the Confirm Production Order app.
● Automatic goods issue posting together with the operation confirmation, for example,
using the Confirm Production Order Operation app.

In the case of manual goods issue posting, the system proposes the component quantity and
the issue storage location since both are maintained in the reservation item. You can either
accept the proposed values or change the quantities and/or storage locations as required.
You can withdraw a lower quantity if, for example, you only manufacture a fraction of the
ordered quantity, or a higher quantity if, for example, some components were destroyed
during the assembly process.

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 Lesson: Posting Goods Issues for Production Orders

In the case of automatic goods issue posting (→ component materials with a backflush
indicator) together with a confirmation posting, the system automatically posts a goods issue
at the storage location maintained in the reservation item when the operator posts the order
or operation confirmation. The withdrawn quantity scales linearly with the confirmation
quantity. For our bike example, confirming five bikes would result in a goods issue posting of
five frames and ten wheels, respectively.

Note:
You should always use backflush when you don't want to stage materials for a
specific order. It is assumed that the material is already staged and available at
storage location for consumption. Typical application areas are flow and assembly
lines and the staging of less valuable materials (for example, screws, grease, etc.).

Effects of the Goods Issue Posting

After the goods issue has been posted, several processes are triggered.
Watch the following video to learn more.

Video: Outlining the Effects of Goods Issue Postings

For more information on Outlining the Effects of Goods Issue Postings, please
view the video in the lesson Posting Goods Issues for Production Orders in your
online course.

Figure 15: Effects of Goods Issue Postings

The following functions are executed when a goods issue is posted. The on-stock quantity of
the withdrawn components is decreased by the goods issue quantity. Reservations are
reduced. If the entire reserved quantity was withdrawn, the final issue indicator is set. At the
same time, the reservation is removed from the Stock and Requirements list as it is not
relevant anymore. Actual component costs are determined and accounted to the order. The

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Unit 5: Executing Production Orders

order header status Goods Movement Posted is set. Material documents are generated. To be
able to easily analyze goods issues to production orders, SAP recommends enabling the
documentation of goods movements in customizing.

Goods Issue Posting with the Post Goods Movement App and the Picking List
Now that you know the options to post goods issues, let's see how to do this in SAP S/
4HANA. In the following demonstration, you will learn how to analyze a production order using
the order report. Afterward, you will see how you can post the goods issue of assembled
components. Finally, you will learn how to analyze the effect of the goods issue posting on the
production order.

Video: Posting Goods Issues Manually

For more information on Posting Goods Issues Manually, please view the video in
the lesson Posting Goods Issues for Production Orders in your online course.

Note:
If you have access to a practice system, you can now execute the exercise Post
Goods Issues for a Production Order.

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 Unit 5
Exercise 6
Post Goods Issues for a Production Order

Simulation: Post Goods Issues for a Production Order

For more information on Post Goods Issues for a Production Order, please view
the simulation in the lesson Posting Goods Issues for Production Orders in your
online course.

For the production order of your finished product, T-FSP1##, you post the goods issues in the
picking list and check the result.

1. Use the Pick Components for Production Orders app to post the goods issues for all three
components of the production order for the T-FSP1## material.

2. In the SAP Fiori Launchpad, execute the Manage Production Orders app to analyze the
material components of your production order. Proceed to the production order details
tab, Components, and review the open quantities. How many items are open for each
component?

3. In the SAP Fiori Launchpad, execute the Monitor Material Coverage – Net Segments app to
check the stock/requirements situation for the components: T-SSP1##, T-SSP2##, and
T-RSP1##. How many items remain on stock? How many dependent requirements are
displayed?

Result
You posted the goods issue to the production order. The material reservation is completely
consumed and therefore not displayed any more in the Manage Material Coverage app. The
stock quantity decreased.

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 Unit 5
Solution 6
Post Goods Issues for a Production Order

Simulation: Post Goods Issues for a Production Order

For more information on Post Goods Issues for a Production Order, please view
the simulation in the lesson Posting Goods Issues for Production Orders in your
online course.

For the production order of your finished product, T-FSP1##, you post the goods issues in the
picking list and check the result.

1. Use the Pick Components for Production Orders app to post the goods issues for all three
components of the production order for the T-FSP1## material.
a) Open the app.

b) In the window, Picking List: Initial Screen, in the field, Material, in the section, Selection
at Header Level, enter T-FSP1## and choose Execute.

c) The system displays the Order Information System: Detail List of Components result
list. The result list should contain three entries (materials: T-SSP1##, T-SSP2##, T-
RSP1##) for one production order.

d) Select all three line items. You can select more than one line item by holding the ALT
key on your keyboard. Alternatively, choose Select All in the table selection menu in
the upper left of the table (icon with several boxes).

e) Choose Picking.

f) In the table, Goods Movements Overview, select all three line items by checking the
check box.

g) Choose Post.

h) The system returns to the window, Order Information System: Detail List of
Components. Choose Refresh.

i) The result list should now be empty.

2. In the SAP Fiori Launchpad, execute the Manage Production Orders app to analyze the
material components of your production order. Proceed to the production order details
tab, Components, and review the open quantities. How many items are open for each
component?
a) Open the Manage Production Orders app.

b) Choose Go to refresh the result list.

c) Choose the line item corresponding to your production order.

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 Lesson: Posting Goods Issues for Production Orders

d) Proceed to the tab, Components.

e) For all three components, the open quantity is 0 as shown in the column, Quantity.

3. In the SAP Fiori Launchpad, execute the Monitor Material Coverage – Net Segments app to
check the stock/requirements situation for the components: T-SSP1##, T-SSP2##, and
T-RSP1##. How many items remain on stock? How many dependent requirements are
displayed?
a) Open the Monitor Material Coverage – Net Segments app.

b) Select the line items for the three component materials: T-SSP1##, T-SSP2##, and T-
RSP1##.

c) Choose Manage Materials.

d) In the table, Materials, on the right, choose T-RSP1##.

e) In the table, Material Details, on the right the Stock quantity should be 1970 pc
(provided that you increased the stock to 2000 pc as requested in previous exercises -
if you increased to a different value, the remainder stock might be different).

f) There are eight dependent requirements. The component reservation disappeared due
to the goods issue posting.

g) Repeat steps d-f for the two other materials. There should be eight dependent
requirements, respectively. The remainder quantity for T-SSP1## (Frame) should also
be 1970 pc. The remainder quantity of T-SSP2## (Wheel) should be 1940 pc since we
withdrew two wheels per bike.

Result
You posted the goods issue to the production order. The material reservation is completely
consumed and therefore not displayed any more in the Manage Material Coverage app. The
stock quantity decreased.

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Unit 5: Executing Production Orders

LESSON SUMMARY
You should now be able to:
● Post Goods Issues for Production Orders

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 Unit 5
Lesson 3
Confirming Production Orders

LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Confirm Production Orders

Order Confirmations
Current Process Step
Let's continue with the next step in the production process of our new bike: Manufacturing the
bike and executing order confirmations. After the shop floor workers at the Bike Company
have taken the necessary materials from the warehouse, they assemble the bikes as stated in
the routing. For each operation of the order, they have to, for example, keep track of how
many bikes they have assembled, report when they began and completed the work, and how
much time they've spent on the individual steps. In SAP S/4HANA, this process is known as
production order confirmations.

Figure 16: Confirmations

Confirmations are the premise for progress control and the basis for cost charging of internal
activities performed for the order. For this reason, confirmations should be carried out by the
shop floor workers as promptly as possible. You can confirm individual operations of one
order or entire orders. As a prerequisite, the orders and/or operations must be released.

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Unit 5: Executing Production Orders

Example of an Operation Confirmation

In the following image, an example of a confirmation on operation level of an order and the
effect of the confirmation posting to the order is displayed:

Figure 17: Example of an Operation Confirmation (left side) and its Effect on the Order (right side)

The operation confirmation provides the following information:

● Operation quantities: Yield, scrap, and rework
The yield quantity is the amount of partially manufactured items which was produced
during this operation and can be transferred to the next work center. The scrap quantity is
the amount of partially manufactured items that had to be scrapped when you executed
this operation. If required, you can provide additional information in text form or even
create quality notifications. The rework quantity is the amount of partially manufactured
items that cannot be transferred to the next manufacturing operation due to, for example,
quality reasons. After the Bike Company has executed the repair, the respective items
reenter the planned production flow.
● Actual dates: Start and finish
You enter the actual start and finish date of an operation which can be used for analysis
purposes or rescheduling of subsequent production operations.
● Setup time, machine time, labor time
The time elements setup time, machine time, and labor time correspond to the various
time elements of an operation. During setup, the operator prepares the work center so that
the manufacturing operation can be executed. In the Bike Company, this can, for example,
be the loading of an automatic assembly program into the assembly robot. Usually, setup
is only executed once for each operation and the respective duration is independent from
the number of items that shall be manufactured. Machine and labor time define the
working time of the operator and machine, respectively, that is required to execute the
manufacturing operation. Usually, these times depend on the number of items that shall
be manufactured. For example, the assembly robot needs 15 minutes to automatically
assemble a bike and the worker needs 5 minutes for packaging. When manufacturing 4
bikes, a total machine time of 60 minutes and a labor time of 20 minutes is confirmed. The
durations of each time element are defined in the routing and proposed by the system
when the shop floor personnel executes the confirmation. Of course, you can also enter

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 Lesson: Confirming Production Orders

values that are different from the proposal if, for example, packaging took longer than
initially planned in the routing.

After posting the confirmation, the order and operation status values are updated to either
partially confirmed (PCNF) or confirmed (CNF): An order is partially confirmed if at least one
but not all of the operations have been confirmed (operation status PCNF or CNF). An order is
finally confirmed when all operations have been finally confirmed (status CNF).

Options for Production Order Confirmations

As stated above, the Bike Company has two main options to confirm production orders in the
SAP S/4HANA system:

Figure 18: SAP S/4HANA Offers Various Options for the Confirmation of a Production Order

Animation: SAP S/4HANA Offers Various Options for the Confirmation of a

Production Order
For more information on SAP S/4HANA Offers Various Options for the
Confirmation of a Production Order, please view the animation in the lesson
Confirming Production Orders in your online course.

Depending on the Bike Company's business requirements, the system offers various variants
for order confirmation. From all available options, the following two are most frequently used:
● Production order confirmation on order header level
In this scenario, you enter a confirmation for the entire order. From a business
perspective, you usually use this scenario for orders with only one or few operations, or for
orders where you are not interested in the detailed order progress. If you enter a
confirmation on order header level, the system automatically confirms all operations. You
can either confirm the order in one confirmation posting or post multiple order
confirmations until the order quantity was reached. After posting an order confirmation,
the system sets a respective confirmation status on order header level.
● Time ticket confirmation on operation level
In this scenario, you enter a confirmation for each operation in the order. From a business
perspective, you usually use this scenario for bigger orders containing many
manufacturing steps where you want to get a detailed overview about the progress of each
manufacturing operation. Similar to the previous case, you can either confirm each
operation in one confirmation posting or post multiple operation confirmations until each
operation of the order is fully confirmed. After posting an operation confirmation, the
system sets a respective confirmation status on operation and order header level.

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Unit 5: Executing Production Orders

Due to the different requirements that arise in practice, SAP provides several confirmation
apps, for example:
● Confirm Production Order
● Confirm Production Order Operation
● And other variants for confirmation

Note:
For one production order, you can either post an order-related confirmation or an
operation-related confirmation. As soon as you posted one confirmation type for
an order, for example, a production order confirmation, you cannot post the other
confirmation type, for example, a time ticket confirmation, and vice versa.

If you made a mistake, you can of course also cancel a confirmation (see Canceling of
confirmations).
As shown in the lifecycle figure above, you can also upload data from a process control or
manufacturing execution system (MES). If your company uses an MES system, the shop floor
personnel interacts with the MES instead of the SAP S/4HANA system. However,
confirmation data is also available in the SAP S/4HANA system since confirmation data
recorded in the MES is automatically transferred via an interface to the ERP system.

Order-related Confirmation
You now know that there are two options to confirm production orders. Let's get to know how
these options are executed in SAP S/4HANA. In the following demonstration, you will learn
how to confirm a production order on header level and analyze the effects of the confirmation.

Video: Confirming a Production Order On Header Level

For more information on Confirming a Production Order On Header Level, please
view the video in the lesson Confirming Production Orders in your online course.

Operation-related Confirmation
In the next demonstration, you will learn how to confirm operations of a production order and
how to analyze the effects of the confirmation.

Video: Confirming a Production Order on Operation Level

For more information on Confirming a Production Order on Operation Level,
please view the video in the lesson Confirming Production Orders in your online
course.

Note:
If you have access to a practice system, you can now execute the exercise Confirm
Operations of a Production Order.

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 Unit 5
Exercise 7
Confirm Operations of a Production Order

Simulation: Confirm Operations of a Production Order

For more information on Confirm Operations of a Production Order, please view
the simulation in the lesson Confirming Production Orders in your online course.

For the production order of your finished product, T-FSP1##, you confirm the operations and
analyze the result.

1. Use the Manage Production Orders app to retrieve the number of your production order.

2. Use the app, Confirm Production Order Operation, to confirm operation 10 of the order.
Confirm the yield quantity and the setup/machine/labor times as proposed by the
system.

3. Stay in the app, Confirm Production Order Operation, to confirm operations 20 and 30 as
described in the previous step. Do not change the proposed yield quantity and setup/
machine/labor time.

Result
You have now confirmed all three operations of your production order for the T-FSP1## Bike.
The order status is now confirmed.

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 Unit 5
Solution 7
Confirm Operations of a Production Order

Simulation: Confirm Operations of a Production Order

For more information on Confirm Operations of a Production Order, please view
the simulation in the lesson Confirming Production Orders in your online course.

For the production order of your finished product, T-FSP1##, you confirm the operations and
analyze the result.

1. Use the Manage Production Orders app to retrieve the number of your production order.
a) Open the app.

b) Choose Go to refresh the list.

c) Write down the order number: _______________

d) You should find the order number in the column, Order. The number should start with
100....

2. Use the app, Confirm Production Order Operation, to confirm operation 10 of the order.
Confirm the yield quantity and the setup/machine/labor times as proposed by the
system.
a) Open the app.

b) In the field, Order, enter the order number from the previous step.

c) In the field, Operation, enter 10.

d) Choose Enter.

e) Review the yield quantity. The system should propose 30 pc.

f) Review the setup time. The system should propose 30 min.

g) Review the machine time. The system should propose 450 min.

h) Review the labor time. The system should propose 450 min.

i) Choose Save.

3. Stay in the app, Confirm Production Order Operation, to confirm operations 20 and 30 as
described in the previous step. Do not change the proposed yield quantity and setup/
machine/labor time.
a) In the field, Order, enter the order number from the previous step.

b) In the field, Operation, enter 20.

c) Choose Enter.

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 Lesson: Confirming Production Orders

d) Choose Save.

e) In the field, Order, enter the order number from the previous step.

f) In the field, Operation, enter 30.

g) Choose Enter.

h) Choose Save.

Result
You have now confirmed all three operations of your production order for the T-FSP1## Bike.
The order status is now confirmed.

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Unit 5: Executing Production Orders

LESSON SUMMARY
You should now be able to:
● Confirm Production Orders

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 Unit 5
Lesson 4
Posting Goods Receipts for Production Orders

LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Post Goods Receipts

Goods Receipts
Current Process Step
Let's continue with the next step in the production process of our new bike: Posting the goods
receipt after all production steps have been executed. The Bike Company has completely
processed a production order for 10 bikes of their new model. Now, the final step in the
production process is to transport these bikes to the designated storage area in your
warehouse and officially record their arrival at the warehouse through a goods receipt.

Figure 19: Goods Receipt

Posting the goods receipt is the last step in the lifecycle of a production order. When you post
the goods receipt, the on-stock quantity is increased. Once all manufactured items were
delivered to the warehouse, the production order is not relevant to production any more.

Options for Goods Receipts

The next image illustrates the options for goods receipt postings:

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Unit 5: Executing Production Orders

Figure 20: Options for Goods Receipt Posting

As shown in the figure, you have the following options to post a goods receipt:
● Manual goods receipt posting, for example, using the Post Goods Movement app.
● Automatic goods receipt posting together with the order confirmation, for example, using
the Confirm Production Order app.
● Automatic goods receipt posting together with the operation confirmation, for example,
using the Confirm Production Order Operation app.

From a business perspective, manual goods receipt posting is usually executed by the
production operator as a last step of the production process or by the warehouse clerk after
the manufactured goods were received in the goods receipt area of the warehouse. You use
automatic goods receipt if, for example, storage systems automatically transfer the
manufactured goods from the shop floor to the warehouse.
As you can also see in the figure, the goods receipt is posted at a storage location, 101A, in our
example. This storage location is maintained in the order header and proposed by the system
when you post the goods receipt. In case of automated goods receipt, the system posts the
goods receipt at this storage location.
Irrespective of whether you use automated or manual goods receipt, you can post multiple
goods receipts (partial receipts) or the goods receipt of the entire manufactured quantity.
When you manually post the goods receipt, the system proposes the yield quantity of the
order or the last operation as receipt quantity (in case of a single goods receipt posting). In
the case of multiple goods receipt postings, the proposed quantity is reduced by the quantity
that was already received in stock.

Effects of Goods Receipt Posting

After the goods receipt has been posted, several processes are triggered.
Watch the following video to learn more.

Video: Outlining the Effects of Goods Receipt Postings

For more information on Outlining the Effects of Goods Receipt Postings, please
view the video in the lesson Posting Goods Receipts for Production Orders in
your online course.

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 Lesson: Posting Goods Receipts for Production Orders

The following functions are executed when a goods receipt is posted: The On Stock quantity is
increased by the goods receipt quantity. The order status is updated to either partially
delivered or delivered. The delivered quantity is updated in the order. Actual costs are
determined and credited to the order. Production Order is removed from the monitor material
coverage list if it was fully delivered, and finally, material documents are generated.

Manual Goods Receipt Posting

In the next demonstration, you will learn how to post a goods receipt for a production order.
After that, you will learn how to analyze the effects of the goods receipt posting on the
production order and on the stock and requirements list.

Video: Posting a Goods Receipt Manually

For more information on Posting a Goods Receipt Manually, please view the
video in the lesson Posting Goods Receipts for Production Orders in your online
course.

Note:
If you have access to a practice system, you can now execute the exercise Post
the Goods Receipt for a Production Order.

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Unit 5: Executing Production Orders

78 © Copyright. All rights reserved.

 Unit 5
Exercise 8
Post the Goods Receipt for a Production Order

Simulation: Post the Goods Receipt for a Production Order

For more information on Post the Goods Receipt for a Production Order, please
view the simulation in the lesson Posting Goods Receipts for Production Orders
in your online course.

For the production order of your finished product, T-FSP1##, you post the goods receipt and
check the result.

1. Execute the Post Goods Movement app to post the goods receipt for your production
order. Select the Goods Receipt for Order process and accept the proposed quantity. Do
not forget to check the OK indicator before saving the goods receipt.

2. Execute the Stock – Single Material app to analyze the stock of your product, T-FSP1##.
How many items are now on stock in plant, 1010, storage location, 101A?

3. Execute the Manage Production Orders app to review the production order. What is the
current status? What are additional status values?

4. Execute the Monitor Material Coverage Net Segments app to analyze the stock/
requirements list of your product, T-FSP1##. Analyze and interpret the current situation.

Result
You posted the goods receipt for the produced material. The stock quantity of the finished
product increased accordingly. Since the production order is not MRP relevant any more, the
order is not displayed in the Stock and Requirements List any more.

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 Unit 5
Solution 8
Post the Goods Receipt for a Production Order

Simulation: Post the Goods Receipt for a Production Order

For more information on Post the Goods Receipt for a Production Order, please
view the simulation in the lesson Posting Goods Receipts for Production Orders
in your online course.

For the production order of your finished product, T-FSP1##, you post the goods receipt and
check the result.

1. Execute the Post Goods Movement app to post the goods receipt for your production
order. Select the Goods Receipt for Order process and accept the proposed quantity. Do
not forget to check the OK indicator before saving the goods receipt.
a) Open the app.

b) From the drop-down in the upper left, select Goods Receipt.

c) From the drop-down to the right of Goods Receipt, choose Order.

d) Now, enter the order number from the previous exercise (e.g. 1000306) in the input
field to the right of the drop-down where you selected Order.

e) Choose Enter.

f) If the Detail data section in the lower part of the screen is expanded, scroll down to the
bottom. You should see the check box Item OK in the bottom left. Select this check
box.

g) If the Detail data section is not expanded, select the check box OK in the table.

h) In all cases, don't change the proposed quantity of 30 pc.

i) Choose Check.

j) If the system issues the Document is O.K. message, choose Post. Otherwise, verify that
you really checked the OK indicator. Usually, if you've forgotten to check this indicator,
the system issues the message: You have not flagged any items as OK.

2. Execute the Stock – Single Material app to analyze the stock of your product, T-FSP1##.
How many items are now on stock in plant, 1010, storage location, 101A?
a) Open the app.

b) In the field, Material, enter T-FSP1## and choose Enter.

c) In the column, Unrestricted-Use Stock, there should be 30 pc at storage location, 101A,

in plant, 1010.

3. Execute the Manage Production Orders app to review the production order. What is the
current status? What are additional status values?

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 Lesson: Posting Goods Receipts for Production Orders

a) Open the app.

b) Choose Go to refresh the result list.

c) The order status should be Delivered as shown in the column, Status.

d) Choose the Delivered status to display additional status values. The order status is
also, for example, Confirmed.

4. Execute the Monitor Material Coverage Net Segments app to analyze the stock/
requirements list of your product, T-FSP1##. Analyze and interpret the current situation.
a) Open the app.

b) Select the line item corresponding to the T-FSP1## material and choose Manage
Materials.

c) In the Stock / Requirements List, the Stock quantity should be 30 pc. The production
order is no longer relevant for MRP and therefore not displayed any longer in the
Stock / Requirements List.

Result
You posted the goods receipt for the produced material. The stock quantity of the finished
product increased accordingly. Since the production order is not MRP relevant any more, the
order is not displayed in the Stock and Requirements List any more.

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Unit 5: Executing Production Orders

LESSON SUMMARY
You should now be able to:
● Post Goods Receipts

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 Unit 5

Learning Assessment

1. Which functions can only be performed after a production order has been released?
Choose the correct answers.

X A Goods issues

X B Confirmations

X C Capacity planning

X D Availability checks

X E Printing shop floor papers

2. What options are available for release?

Choose the correct answers.

X A Release of individual operations

X B Release of orders using mass processing

X C Release of operations triggered by good issues

X D Release of individual orders

3. Which information is available in a material reservation?

Choose the correct answers.

X A Material number of the component

X B Quantity

X C Storage location

X D Vendor

X E Purchase info record

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Unit 5: Learning Assessment

4. Which of the following functions are executed in the system when you post a goods issue?
Choose the correct answers.

X A Decrease of the on-stock quantity

X B Increase of the manufactured quantity

X C Actual component costs are calculated an attributed to the order

X D Material documents are created

X E A supervisor is informed to confirm the goods issue quantity

5. Which options are available if you want to post a manual goods issue to a production
order?
Choose the correct answers.

X A Post Goods Movement app

X B Pick Components for Production Orders app

X C Confirm Production Operations app

X D Confirm Production Orders app

6. Which of the following information do you enter when posting a confirmation?

Choose the correct answers.

X A Yield, scrap, and rework quantity

X B Actual start and finish date

X C Milestone posting indicator

X D Operation activity times (e.g. setup time, machine time, labor time)

7. Which of the following options are available for confirmations?

Choose the correct answers.

X A Order confirmation on header level

X B Time ticket confirmation on header level

X C Time ticket confirmation on operation level

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 Unit 5: Learning Assessment

8. Which information is also updated when you post a confirmation?

Choose the correct answers.

X A Order header status

X B The planned order that is related to the production order

X C Operation status

X D Actual production dates

X E Planned independent requirement

9. Which quantities can you post?

Choose the correct answers.

X A Scrap

X B Goods receipt quantity

X C Rework

X D Yield

X E Inspected quantity

10. Which options do you have for goods receipt postings?

Choose the correct answers.

X A Manual goods receipt posting

X B Automatic goods receipt posting with order confirmation

X C Automatic goods receipt posting with operation confirmation

X D Combined goods issue and goods receipt posting

11. What are the effects of a goods receipt posting?

Choose the correct answers.

X A Increase of stock quantity

X B Creation of material documents

X C Update of order header status

X D Update of operation status in the order

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