SAP ConsultingManufacturing
SAP PP - Production Planning
SAP PP (Production Planning) decides what to make, how much and when, then turns that plan into production or process orders and records shop floor progress through confirmations. In S/4HANA the requirements calculation runs inside the database as MRP Live.
Part of these processes
Process
From demand to period-end in SAP PP
In discrete make-to-stock production, the production order moves through CRTD, REL, PCNF, CNF and TECO.
- 01Demand managementMD61 · F3445
PIRs or sales orders
- 02MRP Live runMD01N · F1339
Supply proposed for shortages
- 03Conversion and releaseCO40 · F4171 · REL
Availability check
- 04Issue and confirmationCO11N · backflush
Quantity, scrap, activities
- 05Goods receiptMIGO · F3110
Finished goods into stock
- 06Period-end closingKKAX · KKS2 · KO88
WIP, variance, settlement
Comparison
Three production types, three setups
All three need a production version in S/4HANA. They differ in master data, in how work is confirmed and in where costs collect.
Discrete
Discrete manufacturing
- BOM + routing
- Production order (CO01 · F2336)
- Operation confirmation: CO11N
- Costs collect on the order
Process (PP-PI)
Process manufacturing
- BOM + master recipe (C201)
- Process order (COR1 · F4587)
- Phase confirmation: COR6N
- PI sheets and EBR not strategic
Repetitive (PP-REM)
Repetitive manufacturing
- No orders, period quantities
- Run schedule header
- Confirmation and backflush: MFBF
- Costs on a product cost collector
Scope
What we cover when setting up SAP PP
Production master data
BOMs, routings or master recipes, work centers and the production version that S/4HANA now requires.
MRP parameters and strategies
MRP type, lot sizing, safety stock, make-to-stock and make-to-order strategies; MRP areas where needed.
Capacity and scheduling
Manage Work Center Capacity (F3289) and the Capacity Scheduling Board (F3951); PP/DS assessed for bottlenecks.
Confirmations and backflush
Operation or phase confirmations, backflush rules, scrap recording and follow-up on open confirmations.
Kanban and demand-driven supply
Control cycles in PKMC, the Kanban Board (F4630) and DDMRP buffers (F3276) for suitable materials.
Product costing with SAP CO
Standard cost estimates (CK11N, CK40N) and the period-end sequence of WIP, variances and settlement.
Current state
What S/4HANA added and removed in SAP PP
- MRP Live (MD01N) plans in a single database procedure and writes no MRP lists; materials in setups it does not support are handed to classic MRP automatically.
- Production versions are mandatory: BOM and routing alternatives are found only through them. Storage location MRP is gone and MRP areas take its place.
- On-premise, rights to MRP lists (MD05, MD06) ended on 31 May 2026 and PP-PI items (PI sheets, campaigns, EBR) run to end-2030. In private cloud (RISE) all of them run to end-2033.
- Embedded PP/DS has been in the core since 1610 and may need its own license. Demand-driven replenishment (DDMRP) came with 1809, predictive material and resource planning (pMRP) with 1909.
Localization
Turkish subcontracting and trade rules
Subcontracting round trips
The GİB guide requires separate e-Dispatch notes for the outbound and return trips when goods go to another taxpayer for processing. Design it with SAP MM subcontracting.
E-Dispatch NoteInward processing regime
Import quantities on the inward processing authorization rest on what the regulation calls the yield rate, which can be derived from BOMs, confirmations and scrap.
Import and Export PackageDomestic goods certificate
The application asks for a production calculation with a material list, production recipe and cost calculation. Much of that data already sits in SAP PP and SAP CO.
From the field
What we keep running into in SAP PP projects
- Missing production versions block orders. Materials left without a version after conversion make MRP and order creation fail. Generate the gaps in bulk with CS_BOM_PRODVER_MIGRATION02, then keep them clean in production with F1425A.
- Confirmations get keyed in at day's end. Late confirmations distort WIP, variances and capacity load all at once. Use backflush, shop floor terminals or an MES link, and give the open confirmations list an owner.
- Dates are promised without a capacity check. A date given without seeing the real load at the bottleneck will slip. F3289 and F3951 make that load visible; where sequencing and setup times matter, check the license terms and assess finite scheduling in PP/DS.
- Planners will not let go of MD05. The MRP list habit slows the move. Train shortage handling in Manage Material Coverage (F0251) and Detect MRP Situations (F3853) before go-live, and move custom BAdIs to AMDP BAdIs.
FAQ
SAP PP: common questions
What is SAP PP and which production types does it cover?
It is the production planning and execution component of S/4HANA, covering demand management, MRP, capacity planning and order execution. It supports discrete manufacturing (production orders and routings), process manufacturing (PP-PI: process orders and master recipes) and repetitive manufacturing (period quantities and backflush). Kanban and embedded PP/DS can be added.
How is MRP Live different from classic MRP?
MRP Live reads supply and demand and creates proposals in a single database procedure, which according to SAP makes several runs a day possible. It writes no MRP lists, always creates purchase requisitions for externally procured materials and passes materials in unsupported setups to classic MRP.
How do production costs reach SAP CO?
The production order is itself a cost object: goods issues, confirmed activities and the goods receipt hit it immediately. Classically, WIP (KKAX) and variances (KKS2) are calculated at period-end and the order is settled with KO88, or CO88 in bulk. With Universal Parallel Accounting, event-based posting replaces this: WIP at issue and confirmation, variance at final delivery.
Does every manufacturer need PP/DS?
No. PP/DS is planning embedded in S/4HANA that schedules in detail against finite capacity and component availability. It pays off where bottleneck resources, sequencing and setup times matter; for simple flows standard capacity planning is enough. Embedded PP/DS may need a separate license.
Do we need SAP Digital Manufacturing on the shop floor?
Not every plant does. Where confirmations come in on time from terminals or through backflush, the execution functions in SAP PP are enough. If you need serialized SFCs, data collection per operation or OEE, look at SAP Digital Manufacturing, SAP's fully cloud-based MES: orders flow down from S/4HANA, confirmations and goods receipts flow back.
How often should MRP run?
That depends on your business. MRP Live is fast enough for several runs a day. Net change planning, which looks only at materials that changed, continues through a redesigned planning file, while the ECC option of net change within the planning horizon has been removed.
Sources12 sourcesSAP Help Portal, SAP Support, SAP News Center +4
SAP Help Portal
- Simplification List for SAP S/4HANA 2025 - Feature Pack Stack 1 help.sap.com (opens in a new tab)
- Carrying Out the Planning Run Using MRP Live help.sap.com (opens in a new tab)
- Production Order Phases (PP-SFC) help.sap.com (opens in a new tab)
- Prerequisites - Advanced MD04 (PP/DS extensions) help.sap.com (opens in a new tab)
- Universal Parallel Accounting (UPA) in Production Accounting help.sap.com (opens in a new tab)
- Introduction - Integration Guide for SAP Digital Manufacturing help.sap.com (opens in a new tab)
SAP Support
SAP News Center
SAP
SAP Fiori Apps Library
GİB
Mevzuat Bilgi Sistemi
Sources checked as of October 2026. SAP Notes require an SAP for Me account.
SAP Consulting
Bring your SAP PP setup closer to the shop floor
Your production types and MRP parameters make a good first topic for a call.