The component offset is the planning period in which the component is consumed by the production process.
The component offset defines the relative distance of the component request period from the period in which the production process starts. If you want to model a component request for the first period of the production process, you must set the component offset to zero.
You define the component offset in the COMPONENTOFFSET attribute of the master data type PRODUCTIONSOURCEITEM (production source of supply item), as shown in the following Figure. It must be an integer value and can't be more than its production lead time. If you don't specify anything at the production source item level, all components have an offset of zero. This means that dependent production demand for components or component consumption is at the start period of production.

To define production lead time, you use the following master data attributes:
- Production Lead Time (PLEADTIME):
Use this attribute to specify the duration of the production lead time as a number of planning periods. You assign it to the master data type SOURCEPRODUCTION (header).
- Capacity Consumption Policy (PCAPACONSPOLICY):
Use this attribute to define how capacity consumption is modeled in the production process. You assign it to the master data type SOURCEPRODUCTION (header).
- Component Offset (COMPONENTOFFSET):
Use this attribute to specify, for each component, an offset that defines the planning period in which it is consumed by the production process. The offset relates to the start (that is, the first period) of the production process. You assign it to the master data type PRODUCTIONSOURCEITEM.

The output key figure Component Work in Progress (Usage) (COMPONENTWIP) and its corresponding downstream key figure COMPONENTWIPDS show, for each component, the number of units released to an ongoing production process in each period.
The production process for output product P1 takes four periods. It starts in period 2 and ends in period 5, so the production lead time is three periods. The output product is available in the last period of the production process (called the output period).
The figure shows that the production receipts for product P1 are five units in period 5 (the period in which the production process ends).
Product P1 has a production source of supply with two components, C1 and C2. The production process needs component C1 at the beginning of the production process (period 2). The Component Usage key figure has a value of five units in period 2 (in this example the component coefficient is one for both components).
As component C2 is required in the third period of the production process (period 4), its component offset is two, meaning that it's needed two periods after the start period.
SAPIBP1: Production Lead Time - Component Work in Process


Production process has a production lead time of three periods. The process of generating four units in period #3, therefore, started in the past. As the component offset of component C1 is zero, the production process has already consumed the component in its start period (period 0). In this case, component consumption can’t be reflected in key figures. However, it can be calculated in the Component Work In Progress key figure for periods #1 and #2 (4 x 3 = 12 units) as the component coefficient of this process is constant at three. This is also the component usage for period 0.
In period 3, the component work in progress decreases to zero as the output product is available in this period.
The second production process generates production receipts of 2 units in period #7, causing component usage of 6 units in period 4. The component work in progress for component C1 increases accordingly, to 6.
The third production process generates production receipts of 3 units in period #8, causing component usage of 9 units in period #5. The component work in progress increases by this component usage to 15 (6 + 9). The component work in progress is 15 in both period #5 and period #6.
As period #7 is an output period (the period in which a production process ends), the component work in progress of component C1 decreases by the corresponding component usage of 6 units, meaning that the component work in progress in period #7 reduces to 9 units. It decreases to zero in period #8 because the remaining production receipts of output product P1 are available in this period.