Material Master Views Basic Data 1 View:

General Data Tab: Division

A way of grouping materials, products, or services. The system uses divisions to determine the sales areas and the business areas for a material, product, or service.

Use
A product or service is always assigned to just one division. From the point of view of sales and distribution, the use of divisions lets you organize your sales structure around groups of similar products or product lines. This allows the people in a division who process orders and service customers to specialize within a manageable area of expertise.

Example
If a sales organization sells food and non-food products through both retail and wholesale distribution channels, each distribution channel could then be further split into food and non-food divisions.

Laboratory/design office
Key for the design office, laboratory, or laboratory worker responsible.

Dependencies
You define the keys in Customizing (for the Material Master).

Product allocation determination procedure

The product allocation determination procedure determines how product allocation is carried out.

Use
The product allocation determination procedure should be entered in the basic data screen in the material master record. Certain allocations to the product allocation determination procedure strongly influence how product allocations can be created with the application menu: 1. You assign an info structure to the product allocation determination procedure. This info structure influences which criteria are used when product allocations are stored in the planning hierarchy. 2. You can assign several objects to the product allocation determination procedure. Each object has its own validity period. On the basis of the delivery date in the order, the system determines the relevant object. The system then uses this object to determine the corresponding planning hierarchy which contains product allocations.

Product hierarchy
Alphanumeric character string for grouping together materials by combining different characteristics. It is used for analyses and price determination.

Use
The product hierarchy on the Basic Data screen is used to depict the competitive materials of competitor 1 in relation to those of competitor 2. Here, your own company and its materials are also regarded as a competitor and as competitive materials respectively. You can use this representation as a basis for market analyses.

Procedure
You normally enter competitive materials using material type WETT. When entering your own materials as competitive materials, you can, however, display the product hierarchy on the Basic Data screen for other material types too.

Dependencies
In the above instance, please note the following points:

If you have created materials at sales organization level, the system warns you on the Basic Data screen that the product hierarchy may differ at sales organization level. When you create new records at sales organization level, the system proposes the product hierarchy from the Basic Data screen.

Cross-Plant Material Status

Indicates whether the material may be used in the following areas for all plants:

Materials management (for example, in purchasing and in inventory management) Production planning and control Plant maintenance Warehouse management Costing with a quantity structure

Use
The cross-plant material status restricts the usability of the material for all plants, that is, it defines whether a warning or error message is displayed if you include the material in a particular function.

Example
The material may be a part under development or one to be discontinued.

Date from which the cross-plant material status is valid Dependencies

Materials planning The valid-from date of the material status is considered only if it precedes or is the same as the planning date; that is, if the valid-from date is later than the planning date, it is not considered, even if it is within the planning horizon. Example I<-------------Planning horizon------------->I -----I--------------------I-----------------------I--> Planning date Valid-from date Time In this case, the valid-from date is not considered in materials planning since it is later than the planning date. Purchasing The valid-from date of the material status is checked against the current date. Example You block the material for purchasing from May 1, xxxx. A purchase order is created for the material on April 28, xxxx with a delivery date of May 10, xxxx. In this case, the valid-from date May 1, xxxx is checked against the purchase order date April 28, xxxx and the purchase order is allowed. Had you created the purchase order on May 3, xxxx, an error message would have been issued.

Assign effectivity parameter values/ override change numbers

Indicates whether you can assign values to the effectivity parameters or override the date, when you explode an assembly or a finished product.

Use
If you set the indicator, the following applies: If you only use date validity, you can override the date that the system uses to determine the components. To do this, you set certain change numbers as valid or invalid.

If you use parameter effectivity, you can assign values to the effectivity parameters. As well as this you can set certain change numbers to valid or invalid and thus override the parameter variant (the values you previously assigned).

General item category group

Materials grouping that helps the system to determine item categories during sales document processing. If a group is configured specific to distribution channel, it has priority if the corresponding activity is distribution channel-dependent.

Procedure
The system automatically suggests an item type in the document depending on the item category group you assign and the sales document type you are processing.

Example
In the standard system, there are normal items, items that signify services (and therefore need no delivery processing) and items that signify packing material, for example.

Dimensions/EAN Tab International Article Number (EAN/UPC)

Glossary definition

Use
The EAN on the Basic Data screen always relates to the base unit of measure.

Procedure
An EAN must fulfil several criteria, for example, it must belong to a valid number range interval, it must normally have a valid EAN prefix, and it must satisfy a predefined check digit algorithm. For this reason, an EAN should only be assigned externally if it is specified by an external source such as the vendor, or if you are familiar with the configuration of EANs in Customizing. It is otherwise best for EANs to be assigned internally.

Dependencies
With internal number assignment, you enter the EAN category but not an EAN. With external number assignment, you enter the EAN but not an EAN category. In this case, the EAN category is determined by the system automatically.

Category of International Article Number (EAN)

Defines how the system determines an International Article Number (EAN) to be assigned internally, and which check criteria (check digit, prefix, and so on) an EAN of this category must fulfil.

Procedure
You do not need to enter the EAN category if you assign the International Article Number (EAN) externally. In this case, the system determines the correct EAN category automatically. If you want the system to assign the EAN (internal assignment), you enter an EAN category, but leave the EAN field blank. If both the EAN field and the EAN category field contain values, the system assumes that you want to enter the EAN externally and that you have possibly entered an incorrect EAN category.

You can find out which EAN categories are suitable for internal number assignment by pressing F4.

Packaging Material Data Tab Material Group: Packaging Materials

Groups together materials that require similar packaging materials.

Example
For example, you could use the term 'liquids' to group together all materials that need to be packed in packaging materials suitable for liquids.

Reference material for materials packed in same way

Material master record that serves as a template for packing with packing instructions for materials that can be packed in the same way.

Use
The material, for which the reference material is entered in the material master record, can be packed with special packing instructions for the reference material.

Dependencies
There must be a material master record for the reference material.

Examples
The materials 4711-01 and 4711-02 can be packed in the same way. For both materials, the reference material 4711 is entered in the material master record. If you now create a packing instruction containing the reference material 4711 as an item of item type "R", both material 4711-01 and material 4711-02 can be packed automatically using this packing instruction.

Basic Data 2 Screen

Other Data Tab Production/inspection memo

Number under which you have stored a production or inspection memo for the material.

Use
This field is purely for information.

Industry Standard Description (such as ANSI or ISO)

Description of the material in accordance with the appropriate industry standard (such as ANSI or ISO).

Use
This field is purely for information.

Page Format of Production Memo

Page format of the material's production or inspection memo. .

The ANSI paper size standards are 8 1/2 x 11 inches and 8 1/2 x 14 inches (also known as legal size paper). The recommended ISO series has a basic size of 1 square meter. Each size is obtained by halving the one above along the longer side, for example, A0 = 841 x 1189 mm, A1 = 594 x 841 mm, and so on.

Use
This field is purely for information.

CAD Indicator
This indicator shows that the object (such as BOM or document) was created or changed in a CAD system. Data transfer in the SAP system via CAD interface.

Use
This indicator is only for information.However you can use it as search criteria for a document search. You can restrict the document search as follows: Entry Description X find documents with a CAD indicator find documents without a CAD indicator * find documents with or without a CAD indicator

Dependencies
This indicator is set using the CAD interface.

Basic Material
Basic constituent of the material.

Use
When you maintain a material master record, any basic material that you specify on the Basic Data screen in the standard R/3 System is checked against a table of basic materials that you can specify in Customizing. For more information, see the documentation for the activity Define basic materials in Customizing for the Material Master.

Environment Tab Dangerous Goods Indicator Profile

Alphanumeric key that uniquely identifies the dangerous goods profile.

Use
You use dangerous goods indicator profiles to control applications for dangerous goods. A dangerous goods indicator profile for the material master consists of a combination of indicators, for example:

Relevant for dangerous goods Execute dangerous goods check Output dangerous goods documents

Environmentally Relevant
Specifies that this is an environmentally relevant material.

Dependencies
When you save a delivery in the SAP component Sales and Distribution (SD), the system checks whether the delivery contains a material for which the Environmentally relevant indicator is set. If it does, an output of output type SDB is selected via an SD condition schema. The output selected is used to forward the data for the delivery (material, recipient, sales organization, and so on) to the Product Safety component, where additional checks and functions are triggered. A report is shipped automatically if:

The environmentally relevant material is assigned to a substance If this substance is subject to a material safety data sheet in the jurisdiction to which the recipient is in turn subject Customizing for Product Safety is configured accordingly under Report Shipping and the system can select a suitable report.

Dangerous Goods Packaging Status

Describes the packaging status for dangerous goods.

Use
The dangerous goods packaging status is evaluated in dangerous goods packaging processes provided that dangerous goods integration with handling unit processing is activated.

In this case, the dangerous goods check for product release takes into account only the document items that are identified as a dangerous goods package in the material master. Dangerous goods integration with handling unit processing checks whether the selected packaging material is identified as dangerous goods packaging or dangerous goods packaging (LQ).

Indicator: In Bulk/Liquid
Indicator that shows if the dangerous goods are to be transported in bulk.

Use
You use this indicator to control data output (hazard identification number, for example) on transport documents.

Packaging Code
Specifies the code for enclosure of dangerous goods comprising a combination of packaging type and material.

Example
4G

Indicator: Highly Viscous

Indicator that shows if the material is a highly viscous substance.

Procedure
You use this indicator to control data output on transport documents.

Client-specific Configuration Cross-Plant Configurable Material

Alphanumeric key uniquely identifying the configurable material. Unlike the plant-specific configurable material, the cross-plant configurable material is valid for all plants.

Configurable Material
Indicator that determines whether the material is configurable.

Use
If this indicator is set, you can assign a variant class to the material, making it possible to use it as a configurable material. This indicator can be set in one of the following ways:

Manually in the material master record, irrespective of the material type In Customizing for the Material Master in the activity Define Attributes of Material Types In this case, the indicator is set automatically whenever you create a material of the corresponding material type. It is not possible to cancel the indicator manually in the material master record.

Material Is a Variant
Specifies that the material is a variant of a configurable material. This makes it possible, for example, to prefabricate frequently required variants and to place them in stock.

Dependencies
The variant is assigned to the configurable material, the characteristics of which describe the variant.

Global Data Synchronization Tab Indicator: Global Data Synchronization-Relevant

Classification View:

Class number
Name used to uniquely identify a class within a class type.

Purchasing View

General Data Tab Purchase Order Unit of Measure

Specifies the unit of measure in which the material is ordered.

Procedure
Enter a value in this field only if you want to use a unit of measure differing from the base unit of measure. If the field does not contain an entry, the system will assume that the unit of measure is the base unit of measure.

Variable Purchase Order Unit Active

Activation of the variable purchase order unit.

Use
The information from the field in the material master record is adopted in the purchasing info record. In the purchase order and in the source list, you can enter an order unit that differs from the one in the purchasing info record. If you wish to specify a different order unit for a requisition, you must assign a source with a different order unit to the requisition. The field also determines whether you work with conditions for each order unit.

Plant-Specific Material Status

Indicates whether, for a specific plant, the material may be used in the following areas:

Materials management (for example, in purchasing and in inventory management) Production planning and control Plant maintenance Warehouse management Costing with a quantity structure

Use
The plant-specific material status restricts the usability of the material for the plant concerned, that is, it defines whether a warning or error message is displayed if you include the material in a particular function.

Example
The material may be a part under development or one to be discontinued.

Tax indicator for material (Purchasing)

Tax indicator for material.

Use
The tax indicator is used in the automatic determination of the tax code in Purchasing. The tax code can be determined automatically within the framework of price determination (via the conditions). Tax indicators are used to facilitate this process. They can be derived from the material master record, Customizing, or the purchasing document. The system determines the tax code from the combination of these tax indicators.

Example
Automatic determination of the tax code is useful, for example, if different tax rates apply depending on whether a material is placed in stock or consumed directly.

Dependencies

If the tax code can be determined automatically via conditions, it takes precedence over the tax code that has been maintained in the purchasing info record.

Material qualifies for discount in kind

Specifies whether and for what areas the material qualifies for a discount in kind.

Use
This indicator is presently used only in Purchasing.

Material freight group

The material freight group is used to group materials so that they can be classifed according to freight code and class.

Use
Freight codes and classes in a freight code set are determined by the material freight group. The freight code set is used to determine freight costs and for communication with service agents.

Procedure
Maintain the corresponding group for the material.

Indicator: "automatic purchase order allowed"

Defines that purchase orders are generated automatically when purchase requsisitions are converted into purchase orders.

Use
If this indicator is flagged, the system does not display the purchase orders on the screen before they are saved.

Dependencies
In the master record for the vendor with whom the material is ordered, the field "Automatic purchase order" must be flagged in the control data for the purchasing data.

Indicator for Original Batch Management

Specifies whether original batches may be created for this material.

Batch management requirement indicator

Specifies whether the material is managed in batches.

Use
This indicator can be set in the material master record manually or, if batches are valuated individually, it is set automatically for the plants concerned, in which case it cannot be changed. The indicator cannot be changed if stocks exist in either the current period or in the previous period. The reason for checking the previous period is because stocks can be posted to this period when goods movements are entered.

Reference Material for Original Batches

Material for which an original batch is created.

Use
If you do not enter an original batch reference material (OB reference material), the system creates the original batch for the material in the production order item or the PO item. If you enter an OB reference material, the system creates the original batch for the OB reference material. If you are working with WIP batches, you can specify the reference material for a WIP batch in this field.

Dependencies
The OB reference material must be a non-valuated material. In Customizing for the material master under Basic Settings -> Material Types -> Define Attributes of Material Types, you must make settings for no value updating for this material type. You can enter the OB reference material at plant level (views Purchasing, Plant Data/Storage 1, or Work Scheduling), or at production version level (view MRP 4). If you enter different OB reference materials at each of the two levels, the system creates the original batch for the OB reference material entered in the production version.

Purchasing Values Tab Purchasing Value Key

Key defining the reminder days and tolerance limits valid, as well as the shipping instructions and order acknowledgment requirement of the material for Purchasing.

Procedure
If you have chosen a purchasing value key, the system enters the values defined in Customizing (for Purchasing) in the fields.

Dependencies
In the purchasing documents, this data is proposed from the information record or, in its absence, from the material master record.

Indicator: Unlimited Overdelivery Allowed

Indicator that specifies whether unlimited overdelivery can be accepted for the item.

Use
When entering a purchasing info record, the system proposes the indicator that you define in the material master record. If no purchasing info record exists, the system also copies the indicator defined in the material master record to the purchase order, contract, or scheduling agreement.

Order Acknowledgment Requirement

Determines whether the purchasing document ( purchase order, outline purchase agreement, etc.) is to be acknowledged by the vendor.

Other Data/ manufacturer data tab Goods Receipt Processing Time in Days

Number of workdays required after receiving the material for inspection and placement into storage.

Post to Inspection Stock

Specifies whether the material is subject to quality inspection (without inspection lot processing) and whether a goods receipt is posted to inspection stock. The indicator is copied to purchase order items and goods receipt items as a default value.

Dependencies
You can select this indicator, if no stock-relevant inspection type has been selected in the inspection setup, and therefore no stockrelevant inspection lots can be created. If you activate a stock-relevant inspection type, the entry in this field is deselected and can no longer be maintained. In this case, a corresponding indicator in the inspection type controls whether goods are posted to inspection stock.

Indicator: Critical part

Specifies whether the material is a critical part, that is, a particularly important part.

Use
In inventory sampling, critical parts are included in the complete-count area. The indicator is otherwise for your information only.

Quota arrangement usage

Key that specifies which business functions use a quota arrangement.

Use
The entry you make here controls how the total order quantity is calculated in the quota arrangement, and thus which source of supply is determined for the material at a particular point in time. You can enter a quota arrangement for the following field combinations:

purchase orders The quantity of the material already ordered is included in the quota arrangement. purchase requisitions The total quantity requested in purchase requisitions for this material is included in the quota arrangement. scheduling agreement The total quantity scheduled in delivery schedules for this material is included in the quota arrangement. planned orders The total quantity planned in planned orders for this material is included in the quota arrangement. materials planning (MRP) The quota arrangement mechanism is also used in materials planning; that is, the planned orders and purchase requisitions created by materials planning are included in the quota arrangement. production orders The total quantity of all production orders for this material is included in the quota arrangement.

Indicator: Source list requirement

Specifies that the source list must have been maintained in the case of external procurement for a certain plant.

Use

If the indicator has been set for a plant, a source of supply must be entered in the source list before a purchase order can be created for issue to the source for the plant.

Indicator: Item Relevant to JIT Delivery Schedules

Determines whether it is possible to generate JIT delivery schedules in addition to forecast schedules for a material specified in a purchase scheduling agreement.

Dependencies
If you set this indicator, it will be copied into the additional data for the item when a scheduling agreement is created.

Manufacturer Part Profile

Defines how you can work with MPN materials in the procurement process.

Use
If you wish to work with MPN materials, enter a profile. The profile then applies to all MPN materials that are assigned to this firm's own, inventory-managed material.

Examples
In the profile, you can specify that:

Entry of the MPN material in the purchase order is mandatory Info records may only be created for the MPN material The system checks the approved manufacturer parts list when you enter an MPN material.

Dependencies
In Customizing for the Material master, the indicator Manufacturer part number must be set. You can check this in the activity Make Global Settings.

Manufacturer Part Number

Specifies the number used by the manufacturer, or also by the vendor, to manage a material.

Use
If there is just one manufacturer part number for your firm's own inventory-managed material, enter the manufacturer. You do not then need to create an MPN material.

Dependencies
In this case, also enter the manufacturer.

Number of a Manufacturer
Specifies the manufacturer of the MPN material or the manufacturer's plant for which a manufacturer master record has been created.

Procedure

If there is exactly one manufacturer part for your firm's own material that is subject to inventory management, enter the manufacturer and the manufacturer part number. If there are several manufacturer parts for your firm's own material that is subject to inventory management, you need to create individual material master records with material type HERS.

Dependencies
If you do not enter a manufacturer, you cannot use the following functions from the Quality Management component:

Selection of inspection plan for manufacturer Dynamization with manufacturer as additional criterion

MRP1 View

General Data Tab MRP Group

The MRP group contains all the materials from the point of view of MRP for assigning special control parameters for the total planning run. These control parameters include, for example, the strategy group, the consumption mode, and the planning horizon.

Use
For each MRP group, control parameters can be created for total planning in Customizing for MRP which deviate from the plant parameters.

Note
If this field has not been maintained, the system uses the material type instead of the MRP group. In this case, the material type has to be maintained as the MRP group in Customizing.

ABC Indicator
Indicator that classifies a material as an A, B, or C part according to its consumption value. This classification process is known as the ABC analysis. The three indicators have the following meanings:

A - important part, high consumption value B - less important part, medium consumption value C - relatively unimportant part, low consumption value

Use
You use this indicator to determine how the material is treated in the case of stratification for inventory sampling.

Plant-Specific Material Status

Indicates whether, for a specific plant, the material may be used in the following areas:

Materials management (for example, in purchasing and in inventory management) Production planning and control Plant maintenance Warehouse management Costing with a quantity structure

Use
The plant-specific material status restricts the usability of the material for the plant concerned, that is, it defines whether a warning or error message is displayed if you include the material in a particular function.

Example
The material may be a part under development or one to be discontinued.

MRP Procedure Tab MRP Type

Key that determines whether and how the material is planned. You have the following options:

Manual reorder point planning Automatic reorder point planning

Forecast-based planning Material requirements planning with forecasts for unplanned consumption Master production scheduling (MPS)

Reorder Point
If the stock falls below this quantity, the system flags the material for requirements planning by creating a planning file entry.

Use
The reorder point is important only for reorder point planning.

Procedure
With manual reorder point planning, you enter the reorder point manually. With automatic reorder point planning, the system determines the reorder point automatically for forecasting purposes. If you are creating a material master record, you must always enter the reorder point manually, even if it is later overwritten by the system. This makes it possible to plan material requirements, even before forecasting.

Planning time fence

The planning time fence specifies a period within which no automatic changes are to be made to the master plan. The planning time fence is maintained in workdays.

Note
It is only used for materials that are planned using an MRP type which includes a firming type. The firming type determines how order proposlas are to be created or scheduled within the planning time fence.

Planning cycle
Key that determines the day on which the material is planned and ordered. The planning cycle is a planning calendar that is defined in Customizing for MRP.

Procedure
In addition to the planning cycle, you can enter a delivery cycle which is defined in the planning calendar field.

Examples
It makes sense to enter a delivery cycle for the following situation: You carry out the planning run and place orders every Monday and Tuesday. The materials that are ordered on Monday are delivered on Wednesday and the materials that are ordered on Tuesday are not delivered until Friday. The system interprets an additionally specified planned delivery time as the minimum delivery time, which means that at least this number of days pass between the planning run or the order and delivery.

Dependencies Before a material can be planned with the time-phased planning procedure, it must be assigned the MRP type that allows time-phased planning.

MRP Controller (Materials Planner)

Specifies the number of the MRP controller or group of MRP controllers responsible for material planning for the material.

Lotsize Data Tab Lot size (materials planning)

Key that determines which lot-sizing procedure the system uses within materials planning to calculate the quantity to be procured or produced.

Maximum stock level

Quantity of the material in this plant that may not be exceeded.

Use
In materials planning, the maximum stock level is used only if you have chosen Replenish to maximum stock level as the lot-sizing procedure; that is, you have entered HB as the lot size key.

Procedure
Enter a value if you have chosen Replenish to maximum stock level as the lot-sizing procedure.

Fixed lot size

Quantity that will be ordered or produced in the event of a shortage.

Procedure
If the amount of the shortage is less than the fixed lot size, it is the fixed lot size that is ordered or produced (and not the lesser quantity that is actually required). If the amount of the shortage is greater than the fixed lot size, a multiple of the fixed lot size is procured. The system creates several purchase order proposals for this purpose.

Ordering costs
Costs that are incurred, irrespective of lot size, for each purchase order or production order over and above the purchase order price or production costs.

Use
The ordering costs are used only for calculating the lot size in optimum lot-sizing procedures. You must specify the ordering costs in the currency of the company code belonging to the plant.

Storage costs indicator

Indicator that specifies the storage costs percentage the system uses when calculating the lot size to determine storage costs. The storage costs percentage is based on the quantity stored and the unit price, and refers to the average value of the materials stored. The percentage is considered constant for the stocking-up period. It normally lies between 15 and 35%.

Use

The storage costs percentage is used by optimizing lot-sizing procedures to calculate the lot size, but not for any other purpose.

Assembly scrap in percent

Percentage scrap that occurs during production of the material if the material is an assembly.

Use
The assembly scrap is used in materials planning to calculate the lot size of the assembly. The system increases the quantity to be produced by the scrap quantity calculated.

Procedure
If the material is an assembly, specify the percentage scrap as required.

Examples
If the quantity to be produced is 200 pieces and you specify an assembly scrap of 10%, you are reckoning with a scrap quantity of 20 pieces. As a result, 220 pieces are produced.

Dependencies
The system increases the quantity to be produced for all of the assembly's components accordingly.

Takt time
If a requirement quantity (for example, for capacity reasons) cannot be procured in a single lot, you have to schedule several receipts. In conjunction with the overlap indicator in the lot size (set in Customizing for the lot size), you can use the takt time to specify that these receipts are offset, that is, that they are delayed by the takt time. You enter the takt time in workdays.

Use
The system uses the takt time if a requirement is covered by several receipt elements due to restrictions on lot size such as maximum lot size (with all lot-sizing procedures) or rounding value (with fixed lot size with splitting).

Rounding Profile
Key that the system uses to adjust the order proposal quantity to deliverable units.

Procedure
In Customizing, enter a threshold value from which the system should round up to the next value per deliverable unit:

If the requirements value exceeds the first threshold value, the system always rounds up to the next multiple of the level found If the requirements value falls below the first threshold value, the system copies the original requirements value.

Two other types of rounding exist:

Dynamic rounding profile: These profiles are used to round up quantities to logistical units of measure (for example, layers). The contents of a logistical unit of measure does not have to be know when creating the rounding profile. It is determined by the master data from the material master.

Rounding profile with quantity to be added/subtracted With these profiles, the given quantity is changed either by adding a percentage or subtracting a percentage.

Only static rounding profiles are taken into account in requirements planning. Neither dynamic rounding profiles not quantity addition/ subtraction are taken into account.

Examples
A material's base unit of measure is 1 unit; the purchase order is to be delivered in layers (1 layer corresponds to 5 units) or in pallets (1 pallet corresponds to 8 layers which contains 40 units). You maintain the profile as follows: From a requirements of 2 units, the system is to round up to 5; from a requirement of 32 units, the system is to round up to 40. This results in the following order proposal quantities: Requirement from 1 -> 1 requirement from 31 -> 30 Requirement from 2 -> 5 requirement from 32 -> 40 Requirement from 6 -> 10 requirement from 74 -> 80 Requirement from 7 -> 10

Dependencies
If no rounding profile has been entered, the system uses the rounding value entered in the material master record for the planning run.

Rounding value for purchase order quantity

Value to a multiple of which the system rounds up the procurement quantity.

Dependencies
The rounding value is used in the planning run if no rounding profile has been specified in the material master record.

Unit of Measure Group

Key that you can use for grouping several units of measure.

Use
You can use the unit of measure group, for example, to define allowed units of measure for a particular material for a vendor or a receiver. This is of significance for when rounding with the dynamic rounding profile if 'check vendor' or 'check customer' is selected in the rounding profiles. In this case, only those units of measure are included in rounding that are defined in the unit of measure group.

MRP areas Tab Indicator: MRP area exists

States whether the specific MRP parameters have been maintained for this material.

MRP2 View

Procurement Tab Procurement Type

Indicator that defines how the material is procured. The following procurements types are possible:

The material is produced in-house. The material is procured externally. The material can be both produced in-house and procured externally.

Use
The procurement type is defined by the material type you have chosen.

Determination of batch entry in the production/process order

Defines when batches have to be determined when using the PP/WM interface.

Use
This indicator refers to the components of an order, not to the finished product to be manufactured. You have the following options:

The batches can be determined when the goods issue is posted. The batches must be entered in the order before it is released. The batches must be entered in the order before the goods issue is posted, but not necessarily before the order is released. If you use pick parts, the batches are determined in the transfer order and then confirmed to the order. If there is no direct link between the transfer order and the production order/process order (for example, with release order parts or crate parts), you must enter the batches in the production order/process order manually. The batches are determined automatically when the order is released.

Special procurement type

Allows you to define the procurement type more exactly. The system determines the procurement type from the material type.

Use
You use special procurement when you want to be able to override the procurement type in the material master or define the procurement type more precisely. If the procurement type is in-house, you can nevertheless force the system to ignore the BOM and routing, and process the material as if it were externally procured, by specifying the special procurement as external.

Procedure

Enter the special procurement type to which you want to restrict the selection.

Example
If you procure a material externally, you may want to choose the special procurement type Consignment. If you produce the material inhouse, it may be appropriate to choose Production in other plant.

Dependencies
If a material has a routing but no BOM, it is treated as an externally procured material even if the procurement type is in-house. Both the BOM and the routing are ignored. However, if you specify the special procurement type as in-house, the routing is included even if the material has no BOM.

Issue (Production) Storage Location

In the case of a material produced in-house, this is the key of the storage location that is copied to the planned order, production order, or run schedule quantity.

If the material is a component, it is the issuing storage location to which a backflush is posted. If the material is produced, it is the receiving storage location to which the receipt of the material is posted.

Procedure
You specify the receiving storage location for repetitive manufacturing in the production version for the material master record.

Quota arrangement usage

Key that specifies which business functions use a quota arrangement.

Use
The entry you make here controls how the total order quantity is calculated in the quota arrangement, and thus which source of supply is determined for the material at a particular point in time. You can enter a quota arrangement for the following field combinations:

purchase orders The quantity of the material already ordered is included in the quota arrangement. purchase requisitions The total quantity requested in purchase requisitions for this material is included in the quota arrangement. scheduling agreement The total quantity scheduled in delivery schedules for this material is included in the quota arrangement. planned orders The total quantity planned in planned orders for this material is included in the quota arrangement. materials planning (MRP) The quota arrangement mechanism is also used in materials planning; that is, the planned orders and purchase requisitions created by materials planning are included in the quota arrangement. production orders The total quantity of all production orders for this material is included in the quota arrangement.

Proposed Supply Area in Material Master Record (Default)

The supply area is used as an interim storage area on the shop floor which is used to provide materials directly at the production line. The proposed supply area is mainly used for KANBAN materials that are only or usually provided at one supply area in a plant. Here, this supply area can be easily saved in the system. The proposed supply area is used, for example, to determine the supply area for the dependent requirements of a material. The supply area in the dependent requirements of a material is required:

to enable the system to calculate the KANBAN control cycles automatically to enable you to select requirements in the pull list with reference to a supply area

Indicator: Backflush
Determines whether the backflush indicator is set in the production order. Here, a 3-level hierarchical logic is applied: 1. In the routing, the backflush indicator is set in the component assignment.

2. In the material master record, the backflush indicator has the characteristic "Always backflush". 3. In the material master record, the backflush indicator has the characteristic "Work center decides", the indicator being set in the work center.

Use
Each material component is assigned to an operation in the production order. If a material component is backflushed, the system posts the withdrawal only upon confirmation of the operation. The withdrawal is then posted automatically.

Default storage location for external procurement

Key of the storage location that is proposed in the purchase requisition in materials planning for subsequent storage of the material. In the case of a material procured externally, this storage location is proposed in the planned order in materials planning.

Indicator: Item Relevant to JIT Delivery Schedules

Determines whether it is possible to generate JIT delivery schedules in addition to forecast schedules for a material specified in a purchase scheduling agreement.

Dependencies
If you set this indicator, it will be copied into the additional data for the item when a scheduling agreement is created.

Stock determination group

Specifies the stock determination group. The stock determination group combined with the stock determination rule at plant level create a key for the stock determination strategy. You enter the stock determination group in the material master record at plant level and it controls a stock determination based on material.

Indicator: Material can be co-product

Indicator you can use to specify that the material can also be used as a co-product.

Indicator: Bulk Material

This indicator defines a BOM item as a bulk material, which is available directly at the work center (for example, washers or grease). The dependent requirements of bulk materials are not relevant to materials planning. This means they are not taken into account for net requirements calculation. Therefore planning for bulk materials should be consumption-based. If bulk materials are subject to material requirements planning, you must create planned independent requirements for them.

Use
Dependent requirements are only created in the planned order for information purposes and they can be displayed there. Dependent requirements for bulk material are not shown in the MRP list or the stock/req. list. You can maintain this indicator in both the material master record an the BOM item. The indicator in the material master record has higher priority.

If a material is always used as a bulk material, set the indicator in the material master record. In this case, the Bulk material indicator in material master record is automatically set in the BOM item. If a material is only used as a bulk material in individual cases, set the indicator in the BOM item.

Dependencies
To improve system performance, you can define in the IMG for MRP that no dependent requirements are to be created for bulk material items. However, this also means that you see no information on bulk material components in the planned order or production order.

Scheduling Tab In-house production time

Specifies the time in workdays needed to produce the material in-house. In-house production time is independent of the order quantity.

Use
The system requires the in-house production time to determine the planned dates for planned orders in materials planning.

Procedure
You can define work scheduling times in the material master record in one of two ways:

Either you enter the in-house production time. If required, you can get the system to update this value from the routing. Or you enter the setup, teardown, processing, and interoperation times. If you maintain these values, the system determines the in-house production time on the basis of lot size.

Planned Delivery Time in Days

Number of calendar days needed to obtain the material or service if it is procured externally.

Procedure

If you have different vendors for a material, you must specify an average value. The same applies if you order the material from a fixed vendor that has varying delivery times.

Dependencies
If you use the SAP Retail System, the planned delivery time can be suggested from the vendor sub-range in the vendor master record.

Goods Receipt Processing Time in Days

Number of workdays required after receiving the material for inspection and placement into storage.

PPC planning calendar

Three character number (numeric or using letters) that specifically identifies a PPS-planning calendar.

Use
There are two uses:

If you have selected the MRP type "MRP" and have set a period lot-sizing procedure according to planning calendar, you enter here which planning calendar is to be used. If you selected the "time-phased planning" MRP type, the planning calendar that you specify here defines the delivery cycle. This specifies the days on which the vendor delivers the material. You can enter the planning cycle in addition to the delivery cycle.

Examples
The following example refers to the use in connection with the "time-phased planning" MRP type. It makes sense to enter a delivery cycle for the following situation, for example: The planning run is carried out and orders are placed every Monday and Tuesday. The materials that are ordered on Monday are delivered on Wednesday but the materials that are ordered on Tuesday are not delivered until Friday. The system interprets an additional planned delivery time as a minumum delivery time, that is, as many days pass between the planning run or the purchase order and delivery.

Scheduling Margin Key for Floats

Key that the system uses to determine the floats required for scheduling an order. You define the following floats with the scheduling margin key:

opening period float after production (only in the case of in-house production) float before production (only in the case of in-house production) release period (only in the case of production order management)

Floats are maintained in workdays.

Dependencies
You maintain the floats grouped together in the scheduling margin key in "Requirements Planning" Customizing.

Net requirements Calculation Tab Safety Stock

Specifies the quantity whose purpose is to satisfy unexpectedly high demand in the coverage period. The risk of shortfalls is reduced by having a safety stock.

Procedure
With manual reorder point planning, you can enter a value in the material master record. However, it is merely for information. With automatic reorder point planning and forecast-based planning, the system determines and adjusts the value automatically for forecasting purposes.

Safety Stock
Specifies the quantity whose purpose is to satisfy unexpectedly high demand in the coverage period. The risk of shortfalls is reduced by having a safety stock.

Procedure
With manual reorder point planning, you can enter a value in the material master record. However, it is merely for information. With automatic reorder point planning and forecast-based planning, the system determines and adjusts the value automatically for forecasting purposes.

Service level
Percentage specifying what proportion of the requirement is to be covered by the warehouse stock.

Use
The system uses the service level to calculate the safety stock. The higher the service level, the higher will be the safety stock calculated by the system to compensate for additional consumption or delays in delivery.

Minimum Safety Stock

The quantity that defines the lower limit for safety stock. This value cannot be exceeded.

Use
Defining a lower limit can influence the following:

material master data maintenance The safety is checked to see if it is greater or equal to this lower limit. forecasting The lower limit is checked if you use an availability indicator which shows, according to customizing settings, if the safety stock is to be calculated again in a forecast. If the safety stock is lower than this level in forecasting, the safety stock is automatically increased to the value of the lower level.

Dependencies
The safety stock must always be greater or equal to this lower level.

Range of coverage profile

The range of coverage profile contains the parameters for calculating the dynamic safety stock. This is a statistical calculation on the basis of average daily requirements.

Use
The dynamic safety stock is calculated depending on the requirements within a specified period and the range of coverage.

Dependencies
The range of coverage profiles (period length for calculating the average consumption, range of coverage, and so on) are maintained in Customizing in the MRP screen.

Safety time indicator (with or without safety time)

You use this indicator to switch on the safety time actual range of coverage for a material in MRP. If you define a safety time, the requirements in MRP are brought forward on the time axis by the number of workdays you define here. The actual range of coverage corresponds to the number of days, by which the requirements are brought forward.

Using this indicator you can activate the safety time and you can set whether all requirements or only independent requirements (sales order, planned independent requirements, and so on) are to be brought forward. The actual requirements dates are not changed.

Safety time (in workdays)

In this field, you define the number of workdays for the safety time/actual range of coverage. If you define a safety time, the requirements in MRP are brought forward on the time axis by the number of workdays you define here. This does not change the actual requirements dates. However, as the requirements have technically been brought forward, receipts are created for the earlier dates in MRP.

Dependencies
Time-phased materials planning is based on the interval between the MRP date and the availabilty date of the next MRP date. By using the safety time/ actual range of coverage, the number of days to the interval are included in the calculation.

Period Profile for Safety Time

The period profile for the safety time / actual range of coverage contains the periods (stating to/from date) with the safety time/actual range of coverage that is valid for each period. You define the period profile in Customizing for MRP.

Use
In order to smooth out seasonal fluctuations, for any definable period you can define a safety time/actual range of coverage that varies from what you have maintained in the material master in the field safety time/actual range of coverage. If, for example, a higher actual range of coverage than usual is required due to higher demand during the Christmas period, you can define the period with the desired actual range of coverage in the period profile.

You can also use the period profile to represent a safety time of less than one day. You do this by entering a safety time % in addition to the safety time.

MRP3 View

Forecast Requirements Tab Period Indicator

Indicator specifying the periods in which the material's consumption values and forecast values are managed.

Fiscal Year Variant

The fiscal year variant is used to define the fiscal year.

Use
You can define the following using a fiscal year variant:

How many posting periods are in a fiscal year How many special periods you require How the system determines the posting periods when posting.

In the definition, you allocate your posting periods to the calendar year. Allocation control requires the same number of posting periods in the company code and in the assigned controlling area. This means that the number of posting periods in the fiscal year variants must be the same in the company code and in the controlling area. The period limits for the two fiscal year variants must also coincide. You must define which fiscal year variant is to be used for each company code. To do this, you must define the appropriate fiscal year variant (to contain no more than 16 periods). Note: The company codes delivered with the standard system are allocated to the fiscal year variant that corresponds to the calendar year and which also uses four special periods. You maintain fiscal year variants as well as the allocation of fiscal year variant to the company code in Financial Accounting Customizing. Maintain fiscal year variants Proceed. Allocation of fiscal year variant to the company code Proceed.

Splitting Indicator
Indicator that defines how the system splits forecast requirements into smaller time intervals where the MRP type is forecast-based planning and the period indicator is not "day".

Use
If you enter a splitting indicator, the system will take only a limited number of periods into account when planning the material and split them into smaller time intervals. If you choose "day" as your splitting indicator, the system will spread forecast requirements minus actual consumption values over the remaining workdays in the month.

Planning Tab

Planning strategy group

The strategy group groups all the planning strategies that can be used for a particular material. The planning strategy represents the procedure used for planning a material and is (technically speaking) controlled by the MRP types.

Dependencies
You define planning strategies and strategy groups in Customizing for demand management. For more information on this please refer to Planning strategies.

Consumption mode
The consumption mode controls the direction on the time axis in which the system consumes requirements.

Use
In backward consumption, sales orders, dependent requirements or material reservations consume planned independent requirements that lie before the requirements date. In forward consumption, sales orders, dependent requirements, or material reservations consume planned independent requirements that lie after the requirements date.

Consumption period: backward

Determines the consumption period (in workdays) for backward consumption. Using backward consumption, sales orders, dependent requirements, or material reservations are assigned to and consume planned independent requirement quantities which lie within the consumption period and before the requirements date.

Procedure
The consumption period is specified in days and is valid from the current date. Enter a period between 1 and 999 days.

Consumption period: forward

Determines the consumption period (in workdays) for forward consumption. In forward consumption, sales orders, dependent requirements or material reservations consume planned independent requirements that lie within the consumption period after the requirements date.

Procedure
The consumption period is specified in days and is valid from the current date. Enter a period between 1 and 999 days.

Dependencies
This field controls the reduction of the planned independent requirements by a goods issue for the strategy "make-to-stock production". With this planning strategy, the system reduces the planned independent requirements that lie in the past first. If a period is specified in this field, the system also reduces the planned independent requirements in the future that lie within this period.

Mixed MRP indicator

Defines whether the material is available for:

Subassembly planning with final assembly Gross requirements planning Subassembly planning without final assembly

Planning material
Material number whose planned independent requirements the system uses to consume the sales order of the material in question if you use the planning strategy, "planning with planning material". The strategy, "planning with planning material" is used if the BOM of a finished product contains variable and non-variant parts. The non-variant parts can be planned using the planning material.

Use
You maintain planned independent requirements for the planning material entered here. If a sales order/customer requirement is posted for the material in question, the sales order quantity consumes the planned independent requirements of the planning material. The planning material is not actually produced itself. If is only used for planning non-variant parts and for consuming the planned independent requirements.

Note
In this planning strategy, the system uses the consumption mode maintained for the planning material to determine how many days into the future or the past consumption is to be carried out. The means that you must maintain the consumption mode for this strategy must be maintained in the material master record.

Example
The material master record 4711 contains the material 4712 as a planning material. The planning material contains the BOM with the non-variant parts. You create planned independent requirements for material 4712. When creating a sales order for material 4711, the system realizes that material 4712 is the planning material for material 4711. Then the sales order for material 4711 consumes the planned independent requirements of material 4712.

Dependencies
A valid material master record must exist for the planning material in the planning plant. The material master record of the planning material cannot contain a planning material as this procedure can only be carried out at single-level.

Planning plant
Key which specifically identifies the plant from which the planned independent requirements of the reference material comes from.

Use
You maintain planned independent requirements for the planning material entered here. If a sales order/customer requirement is posted for the material in question, the sales order quantity consumes the planned independent requirements of the planning material. The planning material is not actually produced itself. If is only used for planning non-variant parts and for consuming the planned independent requirements.

Note

In this planning strategy, the system uses the consumption mode maintained for the planning material to determine how many days into the future or the past consumption is to be carried out. The means that you must maintain the consumption mode for this strategy must be maintained in the material master record.

Example
The material master record 4711 contains the material 4712 as a planning material. The planning material contains the BOM with the non-variant parts. You create planned independent requirements for material 4712. When creating a sales order for material 4711, the system realizes that material 4712 is the planning material for material 4711. Then the sales order for material 4711 consumes the planned independent requirements of material 4712.

Dependencies
A valid material master record must exist for the planning material in the planning plant. The material master record of the planning material cannot contain a planning material as this procedure can only be carried out at single-level.

Conv. factor f. plng material

Factor that the system uses to convert the quantity of the current material, measured in the base unit of measure, to the base unit quantity of the planning material.

Example
Material Base unit of measure Planning material to Current material kg --> Conversion factor = 0.001 because 1 kg = 0.001 to

Procedure
Either you enter a factor or the system determines one as follows: 1. The system checks the alternative units of measure maintained for the planning material. If an alternative unit is the same as the base unit of the current material, the conversion factor is proposed immediately. Otherwise, the system continues with point 2. 2. The system attempts to find a conversion factor using the standard units of measure table. If it finds one, it proposes this value. Otherwise, it continues with point 3. 3. The system proposes "1" as the conversion factor.

Examples
Material Base unit of measure Planning material to Current material kg --> Conversion factor = 0,001, as 1 kg = 0,001 to

Base unit of measure of the planning material

Unit of measure in which stocks of the planning material are managed.

Procedure
The base unit of measure of the planning material is copied from the master record of the planning material automatically.

Plant Specific Configuration Tab

Configurable material
Number uniquely identifying the configurable material.

Procedure
Enter a configurable material to which a material variant or planning variant is assigned.

Material Is a Variant
Specifies that the material is a variant of a configurable material. This makes it possible, for example, to prefabricate frequently required variants and to place them in stock.

Dependencies
The variant is assigned to the configurable material, the characteristics of which describe the variant.

Planning Variant
Specifies that the material is used to plan frequently required bill of material (BOM) components or BOM components that are critical for materials planning.

Dependencies
The planning variant is assigned to a configurable material, the characteristics of which describe the planning variant.

The strategy group determines whether the system checks in the sales order if a planning variant exists

MRP 4 View

BOM Explosion/dependant requirements Tab Method for Selecting Alternative Bills of Material
Indicator determining the selection of the alternative BOM when requirements are exploded in material requirements planning.

Use

With Selection by order quantity, the system chooses the alternative BOM into whose lot size range the order quantity falls. The lot size range and area of validity of the BOM apply. With Selection by explosion date, the system chooses the alternative BOM into whose area of validity the date falls according to the setting BOM via dates. With Selection by production version, the system chooses the alternative BOM defined in the valid production version. The lot size range and area of validity of the production version apply.

With Selection only by production version, the system chooses the alternative BOM defined in the valid production version. The lot size range and area of validity of the production version apply. If no production version is found, no production orders or process orders can be created.

Component scrap in percent

Percentage of scrap that occurs during production of the material if the material is a component.

Use
Component scrap is used in material requirements planning (MRP) to determine the quantities of components required. When exploding the bill of material (BOM), the system increases the required quantities of the components by the calculated scrap quantity. Example Required quantity 200 pieces Component scrap 10% Scrap quantity 20 pieces Therefore, 220 pieces are required. For examples of calculation in connection with the indicator for net scrap, see the documentation for this indicator.

Dependencies
If there is also assembly scrap for a higher-level assembly, the system adds together the two types of scrap. If component scrap has been entered in the BOM, this value applies. Otherwise, the value specified in the material master record is used.

Dependent requirements ind. for individual and coll. reqmts

Indicator determining whether the following requirements are allowed for the dependent requirements of the material:

Individual requirements Requirement quantities of the dependent material are stated individually. Collective requirements Requirement quantities of the dependent material are grouped together.

Use
You can maintain this indicator in the following places:

In the material master record

For the explosion type of the BOM item (in Customizing for Basic Data in Define Explosion Types)

The setting for the explosion type overrides that in the material master record.

Dependencies
If the material is assigned to a material type that does not allow quantity-based inventory management in this plant, you can set the indicator to individual requirements only. If the stock is to be managed in sales order stock or project stock, the indicator must be set to one of the following options:

Individual and collective requirements Individual requirements only

If a material managed in project stock is to be procured from another plant using a cross-company-code stock transport order, the indicator must be set to 2 (collective requirements) in the issuing plant because, in this specific context, individual project stock management is not possible in both plants.

Indicator for Requirements Grouping Use

Defines whether the system groups together dependent requirements for the material on a daily basis when analyzing requirements planning. If you set this indicator, the display in the MRP list and stock/requirements list is preset as follows: If several dependent requirements are scheduled on one day, they are grouped together in a single line showing how many dependent requirements have been grouped together. You can also expand the grouping in the MRP list and in the stock/requirements list. Defines whether additional individual/dependent requirements are written for components whose assembly is set such that total dependent requirements are created.

Version Indicator
Indicator which specifies whether production versions exist for this material.

MRP relevancy for dependent requirements

This indicator controls whether dependent requirements are relevant to MRP or not. Dependent requirements include dependent reservations and stock transfer requirements.

Use
You only use this indicator in connection with planning strategies for make-to-stock production, assembly planning. Note that the indicator Dependent requirements not relevant to MRP should only be used when, for example, planned independent requirements exist for an assembly. In this case, no receipt elements for the dependent requirements in MRP should be created as receipts have already been created for the planned independent requirements.

Discontinued Parts Tab Discontinuation indicator

Identifies the material as a part to be discontinued and includes it in the discontinued parts procedure in materials planning.

Use
If this indicator is set, the system transfers the dependent requirements in materials planning to the follow-up material if they are no longer covered by warehouse stocks. However, this requires:

Note

The part to be discontinued and the follow-up material to be planned using material requirements planning (MRP) The base unit of measure of the follow-up material to be the same as that of the part to be discontinued

In subcontracting, uncovered requirements are not switched to the follow-up material after the effective-out date. This is indicated by a corresponding exception message (58) in the MRP list.

Effective-Out Date
Date from which the stocks of the material are to be used up. As soon as no more stock exists for this material, it is to be replaced by the follow-up material.

Use
From this date, the system reassigns the dependent requirements that are no longer covered by warehouse stock of the discontinued material to the follow-up material. This is done as part of material requirements planning.

Procedure
Enter a date if you want to plan the discontinuation of a material for the long term.

Follow-Up Material
Number of the material that the system uses in materials planning to replace the material to be discontinued once its warehouse stock is depleted.

Use
In the material master record and also in the bill of material (BOM), you can define a follow-up material for a material to be discontinued. The follow-up material defined in the BOM has a higher priority than that in the material master record.

Procedure
You must always specify a follow-up material in the material master record for the system to know a follow-up material if none has been specified in the BOM.

Dependencies
Simple discontinuation A component to be discontinued is replaced with a follow-up component at a particular date. In the material master record of the component to be discontinued, you must set discontinuation indicator 1, enter a follow-up component, and specify an effective-out date. Dependent parallel discontinuation A group of materials is replaced with a group of materials; that is, if one component is to be discontinued (the main component), another component must also be discontinued (the subordinate component). In the material master record of the main component to be discontinued, you must set discontinuation indicator 1, enter a follow-up component, and specify an effective-out date. In the material master record of the subordinate component, you must set discontinuation indicator 3.

Repetitive manufacturing/assembly/deployment strategy Tab Ind.: Repetitive mfg allowed

Authorizes the material for repetitive manufacturing.

Use
You can only backflush in repetitive manufacturing if you have set this indicator.

Dependencies
If you set this indicator, you must also specify a repetitive manufacturing profile for this material.

Repetitive manufacturing profile

Controls, via order type, whether you are working with make-to-order repetitive manufacturing, based on sales orders, or with make-tostock repetitive manufacturing, based on no specific orders.

Use
The repetitive manufacturing profile also determines;

how the system deals with activities when backflushing which movement type is used to post goods receipts and goods issues how planned order and run schedule quantities are reduced in the backflush transaction how BOM corrections are made - if errors should occur when posting quantities to be backflushed

Dependencies
Repetitive manufacturing profiles are defined in Customizing for Repetitive Manufacturing.

Action control: planned order processing

This key is used for the function "Actions in the planned order" and defines the sequence of the actions that can be carried out for the planned order.

Use
Using the function, "actions in the planned order", an interface is provided to external assembly control systems. Thus, work progress on the assembly line as well as activities independent of the assembly line can be transferred to the SAP System via a standard interface or a customized interface. Using this function, one or more actions can be carried out for a large number of planned orders in one step that, if carried out online, could only be carried out individually per planned order. Moreover, it is possible to carry out customer-specific actions. In Customizing for MRP, you use the action control to define which actions are allowed and the sequence in which they are to be carried out. An action may be, for example;

explode BOM check material availability schedule planned order, and so on...

Fair share rule

If demand exceeds supply, DRP uses fair share logic to calculate deployment based on on the available to deploy (ATD) quantity, the open sales orders, the safety stock, and the forecast.

Procedure
Specify the fair share distribution method you want the system to use:

Select A to distribute stock proportionally to all DCs according to demand. Select B to raise the stock levels of all DCs to approximately the same percentage of their target stock.

Fair share rule

If demand exceeds supply, DRP uses fair share logic to calculate deployment based on on the available to deploy (ATD) quantity, the open sales orders, the safety stock, and the forecast.

Procedure
Specify the fair share distribution method you want the system to use:

Select A to distribute stock proportionally to all DCs according to demand. Select B to raise the stock levels of all DCs to approximately the same percentage of their target stock.

Indicator: push distribution

If there is excess inventory, surplus stock is retained at its place of origin or is distributed according to push logic.

Procedure
You have three options:

If you leave the field blank, the system uses pull distribution; the demand of the current day is met through deployment, but excess stock is not distributed. If you select P, the system uses pull/push distribution; excess stock is distributed to meet the demand existing within the demand horizon according to the forecast in the DCs. Distribution begins on the first day for which requirements exist in the system and ends with the last day of the demand horizon. If you select X, all the requirements defined in the system are met through deployment. Distribution begins on the first day when requirements exist and continues until all the requirements defined in the system are met.

Deployment horizon in days

Indicates the number of days for which the system considers the ATD quantity and any additional quantity produced. Any quantity produced beyond the supply horizon is not considered in the deployment calculation.

Procedure
Specify the number of days in the supply horizon in the material master record.

Storage location Tab Storage location MRP indicator

Indicator that you use to exclude storage locations from material requirements planning at plant level.

If you do not set this indicator, stock, requirements, and receipts are included in MRP at plant level.

Use
You can exclude storage locations from MRP at plant level in one of two ways:

By excluding storage location stock from MRP If storage location stock is excluded from MRP at plant level, no receipts for this storage location will be created in the planning run. By planning storage location stock separately If storage location stock is planned separately, the storage location is replenished with goods if the stock falls below the reorder point.

Special procurement type at storage location level

Defines the procurement type for the material more precisely at storage location level. The procurement type is predetermined by the material type.

Reorder point for storage location MRP

If this quantity cannot be met, the system enters the material in the planning file at storage location level, given that storage location MRP is active.

Replenishment quantity for storage location MRP

Quantity that must be ordered or produced in the case of a storage location shortage if storage location MRP is active.

Procedure
If you specify a replenishment quantity at storage location level, this leads to a stock transfer reservation within the plant when a planning run is carried out; that is, the replenishment quantity is transferred from the plant to the storage location. The system interprets the replenishment quantity as a requirement at plant level, and as a goods inward movement at storage location level.