As the name suggests ,it is independent on sales order or any other orders. It is the input to MRP. If for a material you are creating PIR in MD61 as 100 in 1 month, It means you need 100 qty of that material produced in your plant after one month. It is independent.
Then MRP will give you the procirement proposals like purchase requisitions(if externally procured materials are short of the requirement..i.e for 100 qty) and planned orders(if inhouse materuals are short of the requirement..i.e for 100 qty)...
PIRs are those which are created by you.. you can create them at any time. MRp will take care of making the necesary materials to be available for that requirement...i.e it will prompt us the dates on which the materials have to be available in the plant to meert the requirement...
PD and VB:
PDwill work with BOM structures.
Imagine the final material A , and its component B
you need 2 pieces of B to produce 1 piece of A.If you work with PD and you receive for example a sales order for A of 10 pieces , the MRP with PD will determinate that you need 20 pieces of B taken into account the sales order delivery date.
The system will use the BOM to know the quantity that you need. You will not have additional stock for the component B. The system will procure when and how many pieces you need.
IF with the same example you work with VB for component B, then you have to define a reorder point (example 5).
If your stock is bellow that level ,the system will procure to get again the reorder point level. If you have enough stock (example 30) the system will not create any purchase requisiton for B, independent of the sales orders of A , and the reservation of 20 pieces.
When yuo work with expensive components you should use PD , because you don´t have stock without pegged requirements.
if the materials are cheap and you need to have allways some stock , you can define VB as planning type.
karthick
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