Introducing Make-to-Stock – Process Manufacturing Based on Production Order (2UG)

After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Introduce make-to-stock – process manufacturing based on production order (2UG)

Introduction to Make-to-Stock – Process Manufacturing Based on Production Order (2UG)

How to Access SAP S/4HANA Cloud, public edition Scope Item Process Flows and Test Scripts

  1. Navigate to SAP Best Practices for SAP S/4HANA Cloud, public edition for Enterprise Management.
  2. Select a country localization from the Version dropdown list.
  3. If necessary, select the Login icon in the upper left corner to log in.
  4. Go to the Accelerators section and, under General Documents, click the link SAP Best Practices content library.
  5. Select the relevant scope option checkboxes to filter information and locate scope item test scripts and process flows.
Ignore the BPMN2 version of process flows.


  • This scope item enables production planning in make-to-stock scenarios and quick reactions to incoming sales orders. The focus is on process manufacturing (supported through production orders).

  • The process starts with the creation of a demand forecast for semifinished goods represented by planned independent requirements (PIRs). Based on PIRs, Material Requirements Planning (MRP) creates a production plan for semifinished goods and explodes the entire bill of material structure. As a result, raw material demand is planned.

  • Production planners can analyze and change the planned-order-based production plan manually.

  • Raw material demand leads to purchase requisitions that trigger alternative procurement scenarios referenced in this scope item.

  • The production process itself is entirely covered via conversion of planned into production orders, order release, direct material issue or backflush, confirmation of operations and goods receipt posting. Order-based target and actual costs are created, ensuring fully integrated material and value streams.

Key Process Steps Covered

  • Process planned independent requirements

  • Perform material requirements planning and evaluation of stock requirement list

  • Process production orders: Create production order, material staging, order release, order confirmation, material movement postings for goods issue and goods receipt

  • Run scrap reports optionally after production


  • Trigger production execution with a production plan
  • Explode the bill of material automatically when running the material requirements planning
  • Improve usability with intuitive confirmation of production operations

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