SAP ERP PICTURES

ERP.PICS is a dedicated website classifying SAP ERP visuals (cheatsheets, flowcharts, process diagrams etc.) by system and process.

Picture Description

This flowchart visually represents the concept of Demand-Driven Material Requirements Planning (DDMRP) within an S/4HANA environment. It focuses on how material flows through a supply chain and how demand triggers actions. A detailed breakdown of each component of the flowchart is provided below:

  1. SAP Transaction Triggers (Inputs):These are crucial document types and planning elements which trigger the MRP functionality within SAP:
    • Sales Orders (VA01/VA02/VA03): Customer requests for goods or services.
    • Purchase Orders (ME21N/ME22N/ME23N): Orders to external vendors.
    • Stock Transport Orders (ME21N/ME22N/ME23N or dedicated STO transactions): Movement of materials between plants within the same company.
    • Returns: Refers to Customer Returns or Vendor Returns depending on the context, generally using respective return order types.
    • Advanced Shipping Notifications (ASN): (Functionality linked to MM/SD integration) Notifications from a supplier that a delivery is on its way, not a transactional element.
    • Inbound/Outbound Deliveries (VL01N/VL02N/VL03N or similar): Documents representing the physical movement of goods.
    • Shipments (VT01N/VT02N/VT03N): Combining multiple deliveries into one shipment.
    • Scheduling Agreements (ME31L/ME32L/ME33L): Long-term agreements with vendors for scheduled deliveries.
    • Planned Orders (MD11/MD12/MD13): A result of the MRP process.
    • Production Orders (CO01/CO02/CO03): A document that is created based on demand or planned orders.
  1. Inventory Transactions (GR & GI): These represent the typical inventory management process.
    • Goods Receipt (MIGO): The process of receiving materials and recording inventory increases.
    • Goods Issue (MIGO): The opposite of a goods receipt. Materials are removed from storage.
  2. Lead time & Decoupling Points:
    • Lead Time: In SAP MRP, different lead times are considered for planned order generation. This can include purchasing lead time, goods receipt lead time, and lead time for quality inspection.
    • Decoupling Points: As mentioned, these are strategic points where buffers are used in order to reduce variability in the system. These are not directly represented in a SAP transaction, but in the master data setup (MRP type, procurement type). The more lead time can be compressed through decoupling points in manufacturing the more likely DDMRP will be useful.
  3. General Ledger Posting, Material Valuation, Profitability Analysis: Secondary and tertiary effects that are caused by the MRP processes.
    • General Ledger Posting: The financial impact of material movement.
    • Material Valuation: The impact on inventory valuation.
    • Profitability Analysis: The impact on the business’s profitability.

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