SAP PP in short

There are four main areas inside of PP. The basic part is Master Data part. Here we can enter all your data needed for planing and manufacturing: Product data, Classification data, Planning parameters, Financial parameters, BOMs, Work centers, Formulas and Routings.

The next part is planning. When speaking about planning, we think of Sales planning, Demand planning, Capacity planning, Material planning and the very special one: Simulative planning. With simulative planning we can use several scenarios and compare all results: materials and capacities needed for each scenario.

The third part is the story about reality. Work order (or PP order) is central cost object and the core of the whole PP module. All material and activity postings are connected to PP order. It does not matter if you produce something internally or by subcontracting - all details are connected to PP order.

The last part is Costing. With help of PP master data it is possible to calculate the price of any product, and with help of material and activity postings the actual costs can be calculated.

If PP order is completed in the moment of month-end, system will compare standard calculation and all PP order postings, and as a result we will have production variances.

If PP order is not completed, the system will calculate WIP by comparing the total input costs (Debit) with total value produced (Credit).

Regarding possible interfaces to external systems, three types of interfaces could be used:

  • interfaces for master data

  • interfaces for planning data

  • interfaces for transactional data.