Creating Production Orders by Planned Order Conversion

As already described in the previous unit, planned orders are created by material requirements planning as planned material receipts to cover requirements. In the case of in-house production, planned orders are then converted into production orders close to the time of production. In this unit, we will discuss various methods for converting planned orders.

The image shows three ways how you can create production orders: By collective conversion or background processing, you convert n planned orders into n production orders. By individual conversion, you convert one planned order into one production order. By partial conversion, you convert one planned order into n production orders.

In most cases, multiple planned orders are converted into production orders at the same time. Based on your business requirements, you can convert planned orders into production orders using collective conversion in the foreground or in the background. During conversion, the system converts each planned order into exactly one production order. To select planned orders to be converted, you can specify various selection criteria, for example plant, MRP controller, opening date, material, and so on.

Alternatively, a MRP controller can manually convert a planned order into a production order using individual conversion or even create several production orders from one planned order by means of partial conversion. In the former case, the planned order is deleted and replaced by the production order. In the latter case, the planned order is fixed and kept, and finally deleted once it is fully converted.