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SAP PP · LessonReviewed by Ravi M, SAP Trainer, 10 yrs · Updated · Published · SAP S/4HANA 2023 · all levels

SAP PP Configuration

PP configuration (customizing) sets up production planning to match the manufacturing environment, order types, MRP settings, work centers, and the master data structures. It is done in the IMG (SPRO) and tailored to discrete or process manufacturing.

Quick answer

SAP PP configuration sets the manufacturing type, discrete with production orders, process with process orders, or repetitive, the order types that control how orders behave, MRP settings and planning strategies per plant and material, and master data structures such as BOM usages and work-centre categories. The planning strategy, make-to-stock against make-to-order, is the decision that most shapes how PP behaves.

Key takeaways
  • Watch out: Wrong planning strategy (MTS vs MTO).

What PP configuration covers

  • Manufacturing type: discrete (production orders), process (process orders), repetitive.
  • Order types & control: how production orders behave.
  • MRP: plant/material MRP settings, planning strategies.
  • Master data structures: BOM usages, work-center categories, routing settings.

Planning strategies

A key configuration area is planning strategies (make-to-stock vs make-to-order and variants), which determine how demand and production are planned, whether you produce to forecast (stock) or to specific sales orders. Choosing the right strategy per material is central to how PP behaves.

Configuration discipline

As with all modules, PP config is built in DEV, transported through QAS to PRD, and never changed directly in production. It must reflect the real manufacturing process (discrete vs process, make-to-stock vs make-to-order), so understanding the shop floor is a prerequisite to configuring PP well.

Common pitfalls

  • Wrong planning strategy (MTS vs MTO).
  • Manufacturing type mismatch (discrete vs process).
  • Configuring without understanding the shop floor.
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