Understanding Further Functionality for Demand Management

You can define this in Customizing for Materials Management under Inventory Management and Physical Inventory → Movement Types → Copy, Change Movement Types.

The default movement types are preset.

In general, planned independent requirements are reduced when there are goods issue postings in SAP S/4HANA Inventory Management. In make-to-stock production, the planned independent requirement is reduced by the goods issue according to the first-in, first-out (FIFO) rule. In planning with final assembly, as in consumption (see consumption mode and consumption periods in the SAP S/4HANA PP/DS product master), the planned independent requirement is reduced by the goods issue for the sales order. For the "planning without final assembly" and "planning with planning product" strategies, Planned independent requirements are reduced in the same way as in the "planning with final assembly" strategy. With the "assembly planning" strategy, the planned independent requirement is reduced by a goods issue for the production order.

In addition to this normal reduction of planned independent requirements, the requirement can be deleted manually. For planned independent requirements created in SAP S/4HANA and transferred to SAP S/4HANA PP/DS, the requirement in SAP S/4HANA must be deleted (transactions MD74, MD75, MD76). Planned independent requirements that only exist in SAP S/4HANA PP/DS (for example, through release of requirements from APO-DP) must be deleted in SAP S/4HANA PP/DS. You can do this in the Planning Adjustment transaction (/N/SAPAPO/MD74), which is available in SAP S/4HANA PP/DS and in SAP S/4HANA. Since the actual adjustment function that you can configure in SAP S/4HANA using the MRP group is not available in SAP S/4HANA (embedded) PP/DS, it is useful to adjust the requirements periodically (for example, every day) using transactions MD74 (SAP S/4HANA) or /N/SAPAPO/MD74 (SAP S/4HANA PP/DS). The required background processes are available.

The following table lists the planning strategies and corresponding PIR reduction:

The independent requirements of make-to-stock production, strategy 10 (requirements type LSF), are reduced as a result of the goods issue. The oldest planned independent requirement is reduced first, in accordance with the first-in, first-out (FIFO) principle and the requirement date. Future Planned Independent Requirements are also reduced by goods issues, provided the consumption mode and the forward consumption period allow this. With goods issue for a sales order, the requirements are also reduced, provided this has been set in the requirements class.

With strategy 30, the sales order requirements are reduced when withdrawals are made for the sales order and the planned independent requirements are reduced by sales from stock (similar to strategy 10).

With strategy 59, the Planned Independent Requirements are reduced by the goods issue for the production order for the finished product. You must backflush the material components.

With strategies 70 and 74, the assembly's Planned Independent Requirements are reduced by the goods issue for a production order or cost center.

The corresponding movement type must allow the reduction of the Planned Independent Requirements. In addition, the system only reduces the Planned Independent Requirements for the requirements type that is controlled by the main strategy of the strategy group assigned to the material. Planned Independent Requirements for the requirements types of the alternative strategies are not usually reduced by the material movements.

Planning strategies represent the procedures a particular company wants to follow for planning production quantities and dates. As stated, in SAP S/4HANA, a broad spectrum of production planning strategies is available, offering numerous options within a broad spectrum from pure make-to-order production to true make-to-stock production.

To summarize again what a planning strategy determines:

• The planning strategy defines whether the production program is created on the basis of sales orders or sales forecast values.
• The planning strategy defines the stocking level for the products. In other words: it defines whether finished products are stored or, for example, whether stocking is to take place at assembly level, and these assemblies are then to be assembled when corresponding sales orders are received ("assemble-to-order").
• The planning strategy defines whether and how customer requirements consume planned independent requirements.

The planning strategies available for a material are listed in Customizing. A planning strategy can be assigned to a material using a strategy group. Various requirements types are defined for each of these strategies and each requirements type is assigned to a requirements class that contains the actual control parameters.

The material or the transaction can determine whether an availability check or a transfer of requirements takes place. You can define this in the requirements class. The requirements class is determined from the material as follows:

If the strategy group is not maintained, the MRP group is used to determine it.

If the MRP group is not defined, the system uses the material type instead of the MRP group to determine the strategy group (the material type must be maintained as the MRP group).

A requirements type is determined using the strategy. Among other things, the requirements type defines the requirements type for the customer requirement.

First, an attempt is made to determine a strategy using the strategy group from the material master.

The requirements class is determined using the requirements type for the customer requirement.

It is also possible to determine the requirement type based on the item category of the sales order with the MRP-type of the material. The sequence of the determination is hard coded but could be influenced through the customizing in the area of Sales and Distribution.

During the adjustment, planned independent requirements that lie within the period of adjustment are ignored in material requirements planning but remain on the database. The aim of the reorganization is to delete the old planned independent requirements from the database.

The reorganization of Planned Independent Requirements is carried out in the following steps:

1. Adjust requirements (transaction code MD74).

   Quantities that have not been assigned before the specified reorganization key date (this date can also be in the future) are set to 0 and flagged for reorganization.

2. Reorganize schedule lines (transaction code MD75).

   Schedule lines that have a quantity of 0 before the key date are deleted from the database.

3. Delete history (transaction code MD76).

   The history can be deleted by determining a (further) key date.