Production Order Processing

After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Outline the basic production order execution process steps

Current Process Step

For the following lessons we will focus on the Area Production Execution – Shop Floor Processing in SAP S/4HANA. The steps for Production Execution will take place in the Production (PP) Module of SAP S/4HANA.

Production Order Characteristics and Execution

As a result of the Materials Requirements Planning, we received as Input for Production execution Planned Orders. The created purchase requisitions will be processed by the purchasing department. Here we will focus on the in-house Production.

See what Paul has to share about Production Orders:

How to Convert a Planned Order

Release of Production Orders

The order release is the basis for the further processing of the production order. Production orders have a status management that controls the possible processing sequence of the individual business processes. When an order is released, a status is set accordingly.

The production order must have a Released status so that the business processes for production order execution can be performed.

An availability check can be executed automatically.

How to Release a Production Order

Posting Goods Issue to Production Order

Goods Issue Posting

The goods issue posting is executed for consumption of a material component for a production order.

Picking List

You can use a picking function to prepare and post material withdrawals. You can use this function to create and print a picking list and post the material withdrawals.

Goods Movement in Inventory Management

You can use the Goods Movement app / transaction in inventory management to post the goods issues.


A material component withdrawal can be posted automatically (backflushing), synchronously or asynchronously when an operation or the order is confirmed. Always use backflushing when you do not want to stage materials for a specific order. It is assumed that the material is staged and available at the work center.

Typical application areas are flow and assembly lines and the staging of less valuable materials.

You can control backflushing in the material master, in the work center or for each BOM component assignment to an operation.

Effects of Goods Issue Posting

Follow the interaction to learn about Goods Issue Posting:

How to Post Goods Issue for Production Order

Confirmation of Time

Time confirmations are an important element of production orders.

Learn more about them in the next interaction:

How to Post Confirmation of Time for Production Order

Effects of Goods Receipt Posting

A goods receipt posting needs to be handled in Inventory Management.

Paul shows you, which processes are triggered:

How to Post Goods Receipt for Production Order

Technical Completion

As the process flow – what can be done in what phase of an order – is controlled by the system status (CRTD – created, REL – Released and many more) once the order is finished from a production point of view, the order should be technically completed (TECO – Technical completed).

When setting an order to technical completed the order is closed and cannot be changed any more. As subsequent activities, the period end closing procedures will take place.

How to Set Technical Completion to a Production Order

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