It is related to two key master data: routing and work center. In routing, which is copied to planned order and production order, the capacity requirement is calculated based on formula defined in capacity tab of work center (setup, processing, tear down formula). For example, the base quantity is 100 units, processing defined as 1 hour. If you produce 1000 units, it takes 10 hours.
Once you converted the planned order to production order. Then you perform confirmation. The capacity reduction takes place. For example, if you confirm 200 units equal to 2 hours, then the total remaining process capacity equals 8 hours. This will show in rem. proc.
Also in work center capacity tab, there will be a field for Control capacity reduction. Normally, it is formula-related. However, you can set the process in such a way that, for example, setup time, the total capacity requirement is reduced completely when partial confirmation is done.
Hope it helps. Apologize with my poor English.
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