Configuring Production Order Types

A production order goes through many different steps in its life cycle. The main steps in order processing are order creation, order release, goods issues, confirmations, and goods receipts.

In between the main steps, the system offers various supporting functions, for example, availability checks, capacity evaluation and leveling, download to process control, order printing, material staging, and upload from process control.

Many of these activities can run automatically or in the background so that manual processing of orders is minimized. Various specific Configuration settings in SAP Central Business Configuration enable the successful execution of each individual step in order processing.

Production orders can be created in various ways via different apps and activities. In all cases, an order type must always be assigned manually or automatically.

With reference to order types, various business processes, for example, scheduling, availability checks and confirmations, are controlled via corresponding configuration activities, which is explained in this course. Therefore, it can make sense to use different order types for different business processes. For example, different order types can be used for make-to stock (MTS) production and make-to-order (MTO) production.

The figure shows, as an example, the creation of a production order via the Create Production Order app.

Production order types are created and maintained in the configuration activity, Define Production Order Types.

When you open the configuration activity, you first find an overview of all the order types that are already created, as shown in the previous figure. Order types are preset in the standard system. You can create new order types by copying and adjusting an existing order type or display or change the details of an order type that are already created.

You find the following information and control settings in the detailed view of an order type:

• Order category:

  The order category (= 10, production order) is a fixed setting and cannot be changed. The order categories are predefined in the SAP System and characterize the technical properties of the orders. Other order categories are, for example, process order and network.

• Residence times:

  Residence times define how long completed orders remain in the SAP system before they are archived.

• Functional area:

  In cost-of-sales accounting, overhead costs are grouped into the functional areas in which they were incurred. All CO objects must be assigned to a functional area. Orders are assigned through the order type.

• Status profiles:

  The business processes of an order are controlled via system statuses. You can also define your own user statuses at the header and operation level using status profiles.

• Number range:

  You must assign a number range to every order type. If you create a new order type by copying an existing one, you can either keep the number range assignment or choose a different one.

Production orders are always created with reference to an order type and a production plant.

The figure shows as an example the creation of a production order via the Create Production Order app. By referring to the plant, many configuration parameters are determined that are necessary for the successful processing of a production order.

In the configuration activity, Define Order-Type-Dependent Parameters for Production Orders, fundamental parameters on plant level are defined.

When you open the configuration activity, you first find an overview of all the combinations of order types with plants that are already created, as shown in the previous figure. You can create new entries or display or change the details of already existing entries.

In the detail view of an entry, in the Planning tab, you find the following information and control settings:

• In the Master Data section, you define the data that influences master data selection or order master data maintenance:

  • Production version:

    You can define if production version is selected automatically or manually when creating an order.

  • Routing:

    • The application is predefined as 'P' (routing for production).
    • The selection ID specifies the priorities according to which routings are selected and whether reference operation sets can also be selected.
    • Sequence exchange and alternative sequences define whether alternative sequences are permitted and how the sequences are to be exchanged.
    • Routing type defines the routing type permitted for production orders.
    • Check Operation Details defines whether operation detail screens are to be checked when the operations are transferred to the order.
    • Routing Text defines that the header long text is copied into the order.

  • Operation:

    You can activate the entry tool for operations to help you when you create operations.

  • Bill of material (BOM):

    The BOM application defines how the BOM alternatives are to be automatically selected.

  • Batch determination:

    The search procedure defines how batch determination is to take place.

  • Planned order:

    Planned order text defines that the header long text is copied into the order.

• In the General section, you define the following:
  • Substitute MRP controller or substitute production supervisor:

    The substitute MRP controller or substitute production supervisor are proposed when you create production orders if an MRP controller or production supervisor are not specified in the material master, or if there is no reference to a material.

  • Reservation or purchase requisition:

    This setting specifies when reservations for stock material components are relevant to MRP and when purchase requisitions are generated for nonstock material components and external operations.

  • Collective requisition:

    This indicator enables collective purchase requisition per order for externally processed operations or nonstock items.

  • Quality inspection:

    The inspection type defines how a quality inspection is to be carried out.

In the Implementation tab, you find the following information and control settings:

• Status Change Documents:

  You define whether you want change documents to be written if a status change occurs. You also define independently from each other the levels at which the change documents are to be written, the header level, operations level, or material component level.

• Documentation of Goods Movements:

  You can specify that goods movements are to be documented with reference to an order. Then you can display goods movements, for example, using the order information system.

In the Cost Accounting tab, you find the following information and control settings:

• Cost Accounting:

  You define the parameters relevant to controlling, such as costing variants for planned and actual costs and a results analysis key.

• Distribution Rule:

  The default (distribution) rule defines an automatically generated distribution rule for CO settlement.