Project Integration with Materials Management (MM) and Production Planning (PP)
By assigning materials to activities, you plan the necessary material requirements for a project. In the SAP system, you must distinguish between stock items and non-stock items. The item category stock item is used for materials that are kept in stock (warehouse, project, or sales order stock). You create reservations for stock items.
Independent requirements (requirements for finished products, saleable assemblies, trading goods, and spare parts) trigger requirements planning. To cover the requirements, you determine order quantities and dates and schedule the corresponding procurement elements. The procurement element for requirements planning is a planned order and, for external procurement, a purchase requisition.
In addition, you determine the dependent requirements for materials produced in-house (in other words, the quantity of components required to manufacture a finished product or assembly) by exploding the Bill of Material (BOM). You can create planned orders at each BOM level to cover requirements when a material shortage occurs.
After the quantities and dates are planned in requirements planning, you convert these planned procurement elements to exact procurement elements. For production, this element is the production order, and for external procurement, this element is the purchase order.