Name: U1_L1_2.mp4
Uploaded: 2024-11-8
Duration: 193 s
Description: In the following video, learn how to specify the planning method for a material using the MRP Type field in the material master record.

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Specifying the Appropriate Consumption-Based Planning Method for a Material

<div id="content"><p tabindex="0">In the following video, Julia explains how to specify the planning method for a material using the <i>MRP Type</i> field in the material master record.</p><div class="kalturaVideoLessonWrapper"><div aria-label="" class="kalturaVideoLessonContainer" data-testid="video" id="1_1d9ipysy"></div></div><p tabindex="0">The <i>MRP Type</i> is a control field in the material master record. One of the most important functions of the MRP type is to define the planning method for a material. SAP S/4HANA provides predefined MRP types. Julia, our virtual trainer, has introduced the standard MRP types relevant for consumption-based planning.</p><p tabindex="0">After these introductory lessons, we'll take a closer look at the planning process for materials planned using consumption-based planning.</p></div>

Definition of the Planning Procedure for a Material

Using Consumption-Based Planning in SAP S/4HANA

<div>In the following video, learn how to specify the planning method for a material using the MRP Type field in the material master record.</div>

U1_L1_2.mp4

Hello again! I hope I have helped you understand what we mean by consumption-based planning. Now, I would like to explain how to specify that a particular material should be planned using one of the consumption-based planning methods. How do you determine the planning method for a material? To determine that a material must be planned using the consumption-based planning method, You must first select the appropriate MRP type when creating or maintaining the material master record. The MRP type is a field in the material master record. One important function of the MRP type is to define the planning procedure for a material. The MRP type is part of the plant or MRP area data of a material. Consumption-based planning includes the reorder point planning method. In reorder point planning, the system checks whether stock plus planned fixed receipts is less than a reorder point defined in the material master record. If this is the case, the system creates a procurement proposal. For a material to be planned using this method, SAP S/4HANA provides the following standard MRP types. Don't worry, I'm going to explain the differences between these MRP types later. Consumption-based planning also includes the forecast-based planning method. In this case, future requirements are forecast on the basis of historical values. Until now, the standard MRP type VV was used for a material that was to be planned by this method. The forecast values were used directly as requirements values. This classic procedure was already supported in SAP ECC and is now part of the SAP S/4HANA compatibility scope. However, it is planned that it can only be used until the expiration date of the Compatibility Pack License, which is December 31, 2025 The replacement procedure now consists of copying the forecast values as planned independent requirements and using, for example, the MRP type PD, which is actually for deterministic planning. Finally, consumption-based planning also includes time-phased planning. Here, historical consumption values are also used to estimate future requirements. In this procedure, however, the planning run is executed according to predefined intervals. For a material to be planned using this method, SAP provides the  MRP types R1 and R2. In the following part of this training, I will explain the different methods of consumption-based planning. At this point, I just wanted to explain the role of the MRP type field in the material master record in defining the planning method for the material.