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SAP modules hub · LessonBy , SAP Trainer, 10 yrs · Published · SAP S/4HANA 2023 · all levels

PP

SAP PP (Production Planning) manages manufacturing, planning what to produce, and executing and confirming production. It drives the plan-to-produce process for both discrete and process industries.

Quick answer

Learn PP by following its end-to-end process, its master data, its configuration (in SPRO), and its integration points with finance and neighbouring modules.

Key takeaways
  • PP covers demand and materials planning (MRP), production execution (production/process orders), capacity planning, and…
  • PP is tightly integrated: MRP reads demand (from SD/forecasts) and stock (MM), production consumes materials (MM goods issue) and…
  • Bill of Materials (BOM): the components of a product.
  • Watch out: Learning screens, not the end-to-end process.

What PP does

PP covers demand and materials planning (MRP), production execution (production/process orders), capacity planning, and confirmation of what was made. It uses bills of materials and routings to plan the components and steps needed, ensuring the right products are made at the right time.

Key processes and objects

  • Bill of Materials (BOM): the components of a product.
  • Routing / Work Centers: the steps and where they happen.
  • MRP: planning material and production requirements.
  • Production/Process Orders: executing manufacturing.
  • Confirmation: recording what was produced.

How it integrates

PP is tightly integrated: MRP reads demand (from SD/forecasts) and stock (MM), production consumes materials (MM goods issue) and produces stock (MM goods receipt), and costs flow to CO (product costing). It sits at the centre of the manufacturing supply chain.

Learning it

Learn PP by following its end-to-end process, its master data, its configuration (in SPRO), and its integration points with finance and neighbouring modules. Hands-on practice in a training system is essential.

Common pitfalls

  • Learning screens, not the end-to-end process.
  • Ignoring the finance integration that every logistics module has.
  • Skipping master-data setup that the process depends on.

Practice challenge

+0 XPStreak ×0
Question 1 of 3
Which statement is true of PP?

Frequently asked questions

What does PP stand for in SAP?
SAP PP (Production Planning) manages manufacturing, planning what to produce, and executing and confirming production. It drives the plan-to-produce process for both discrete and process industries.
What is involved in configuring PP?
Learn PP by following its end-to-end process, its master data, its configuration (in SPRO), and its integration points with finance and neighbouring modules.
What else is worth knowing about PP?
PP covers demand and materials planning (MRP), production execution (production/process orders), capacity planning, and confirmation of what was made.
What tends to go wrong with PP?
Learning screens, not the end-to-end process. Ignoring the finance integration that every logistics module has. Skipping master-data setup that the process depends on.
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