PLANNED /PRODUCTION ORDER

[Former Member]

Dear friends

What is the difference between a production order and planned order. Where we use production order and in which place we use a planned order. Please guide.

regards

Selva

[former_member196398 · Accepted solution]

Selva,

Planned order can be used for 2 different application Purpose.

1. In Repetative Manufacturing Process of SAP, Planned order is the executionable element, based on the forcecast(PIR) and after MRP run planned orders are created, backflushing process is used for Recieving the assembly material and consuming the components and activity confirmation.

2. In the other scenario Planned order is just a planning element, you cannot perform any goods movement or no costs can be incured on this element.

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> In some business scenario a material can be procured from Vendor or can also be Manufactured Inhouse. In this scenario after MRP run for the demand(Forecast), based on the MRP processing parameter, MPR creates Planned order. Now MRP controller decides whether to Convert to the planned order to Purchase Requisation or Production/Process Order.

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> In most business scenario a material which is Inhouse produced. In this scenario after MRP run for the demand(Forecast), MPR creates Planned order. These are Converted to Production/Process Order.

Regards,

Prasobh