Name: U7_L1_1.mp4
Uploaded: 2024-11-29
Duration: 490 s
Description: This video provides an introduction to MRP areas. You will learn how to define MRP areas, how to assign materials to MRP areas and the benefits of working with MRP areas.

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Using MRP Areas

<div id="content"><p tabindex="0">The organizational level relevant for material requirements planning in SAP S/4HANA is the MRP area. Listen to our trainer Julia to learn about the different types of MRP areas and how to use them for planning.</p><div class="kalturaVideoLessonWrapper"><div aria-label="" class="kalturaVideoLessonContainer" data-testid="video" id="1_0bauisem"></div></div><p tabindex="0">In the previous video, Julia described the different types of MRP areas and gave some examples of how to define MRP areas within a plant.</p><p tabindex="0">Julia also explained that once you have created storage location MRP areas, you need to assign materials to these MRP areas if you want to plan them at this level. You do this by creating MRP area-specific material master data.</p><div class="note"><div class="noteTitle"><span class="noteIcon"><img title="Note" src="/icons/note.svg"></span><span class="noteTitleText">Note</span></div><div class="noteBody"><p tabindex="0">While it is necessary to assign materials to storage location MRP areas if you want to plan them at this level, it is not necessary to assign components to subcontractor MRP areas. If you have created subcontractor MRP areas, components provided to these subcontractors are automatically planned at this level. If no specific MRP area planning parameters exist for a component, the system takes the planning data from the plant.</p></div></div><p tabindex="0">In the following interactive demo, you'll learn how to assign a material to a storage location MRP area, that is, how to maintain MRP area-specific data in a material master record. You'll then start a planning run for a material at MRP area level and check the results.</p><div class="simulationTile demo"><div class="content"><span class="simulationLabel">Demo</span><a href="https://education.hana.ondemand.com/education/pub/mmcp/index.html?show=project!PR_C266C9193778DDAC:uebung" target="blank" class="simulationButton">Watch Demo</a></div><div class="simulationImage"><img src="/illustrations/simulation-demo.svg" alt="In this interactive demo, you learn how to assign a material to a storage location MRP area, that is, how to maintain MRP area-specific data in a material master record. We will then start a planning run for a material at the MRP area level." class="no-zoom"></div></div><p tabindex="0">In the next demo, you will see that it is possible to assign a material to a storage location MRP area or not. Only materials that are to be planned at the level of a specific MRP area require MRP area-specific data to be entered in the material master. If no MRP area-specific data has been maintained for a material, i.e. it is not assigned to an MRP area, the material is planned at plant level.</p><p tabindex="0">When planning a material at MRP area level, only the stock in the storage locations belonging to the MRP area is included in the net requirements calculation.</p><div class="simulationTile demo"><div class="content"><span class="simulationLabel">Demo</span><a href="https://education.hana.ondemand.com/education/pub/mmcp/index.html?show=project!PR_FDCDDCD6A922E39B:uebung" target="blank" class="simulationButton">Watch Demo</a></div><div class="simulationImage"><img src="/illustrations/simulation-demo.svg" alt="In this interactive demo, you perform and compare planning at the MRP area level and at the plant level." class="no-zoom"></div></div><p tabindex="0">Working with MRP areas has its advantages: Using MRP areas for storage locations and subcontractors allows differentiation in planning. You can plan materials separately for each MRP area. By defining specific MRP areas, you can carry out precise requirements planning for these areas. The use of MRP areas allows for more timely material provisioning in appropriate quantities, for example, for a specific production line, a spare parts location or a subcontractor's stock.</p></div>

MRP Areas

Using Consumption-Based Planning in SAP S/4HANA

This video provides an introduction to MRP areas. You will learn how to define MRP areas, how to assign materials to MRP areas and the benefits of working with MRP areas. 

U7_L1_1.mp4

Hello, once more. As an SAP professional, you probably already know the importance of organizational units when maintaining data or running a process in SAP S/4HANA. For example, you create a purchase order on behalf of a purchasing organization. Stock quantities are managed at plant and storage location level, and so on. What about material requirements planning? Do you remember that we used to maintain all the material data relevant to planning, such as the MRP type or the lot sizing procedure, in the material master record at plant level? In fact, the plan is typically the organizational level at which MRP is controlled and executed. Sometimes, however, it may be necessary to subdivide a plant. Let's take an example. You may want to perform MRP for a material within a plant differently depending on the storage location where the material is stored. Suppose you have a material available in both a spare parts storage location and a production storage location. You might want to plan it for production using a deterministic planning procedure, while you might decide to use the reorder point procedure for the spare part storage location. To subdivide a plant for planning purposes, you can create MRP areas. The MRP area represents an organizational unit for which material requirements planning is performed independently. By definition, a plant is an MRP area. You can then define additional MRP areas as subdivisions of the plant. We will look at how to define MRP areas in a moment. But before we get into the details, let me give you an overview of what you need to do if you want to plan materials in MRP areas within a plant. What do you need to do to be able to plan materials at the MRP area level within a plant? If you want to subdivide your plant for planning purposes, you must first define the required MRP areas in Customizing. You must then assign the materials that you want to plan at MRP area level to the appropriate MRP areas. Let's start with the definition of MRP areas. How can you define an MRP area? Basically, there are three types of MRP areas. Plant. By default, there is one plant MRP area for each plant. The number of the plant MRP area is the same as the number of the corresponding plant. If no other MRP areas exist, the plant MRP area covers the entire plant with all storage locations and subcontractor stocks. If you want to perform MRP at the plant level for all your materials, no further configuration is required. Storage location. Storage location MRP areas consist of one or more storage locations within a plant. You must create them if you need to plan storage locations within a plant separately, at least for some materials. Subcontractor. A subcontractor MRP area is used to plan the provision of components for a subcontractor separately and is defined by the assignment to this subcontractor. MRP areas can only be defined within a plant, not across plants. Now let's look at some examples of how you can define MRP areas. When you create a plant, the system automatically creates a corresponding MRP area with the same number. If no other MRP areas are created in this plant, the entire plant stock of the materials managed in this plant is used for planning. Each material in this plant is planned uniformly within the plant, for example, by having one MRP type and one one sizing procedure. This option is suitable if you want to perform planning at the plant level for all your materials. In this case, no further configuration is required. In the following example, we have a Plant 2000 with three storage locations. The Plant MRP Area 2000 is automatically there. Suppose you want to plan a storage location separately from the rest of the plant, at least for some materials. To do this, you must create a storage location MRP area and assign it to the storage location, in our example 2003. As long as the remaining storage locations are planned together, no further settings are required for them. In the following example, we have again a plant, here plant 3000, with 3 storage locations. The plant MRP area 3000 is automatically there. Suppose you want to plan each storage location separately, at least for some materials. To do this, you must create a storage location MRP area for each  storage location. In addition, if you want to plan the provision of components for individual subcontractors separately from the usual requirements, you create one MRP area for each subcontractor. A storage location MRP area can contain one  or more storage locations. However, an MRP area of the type subcontractor can contain  only one subcontractor. Once you have defined MRP areas, how do you enable planning  at the MRP area level for a material? It is not enough to create MRP areas in customizing to be able to perform planning at this level. You must explicitly assign materials to the appropriate MRP areas. In other words, as long as a material is not assigned to an MRP area within the plant, it is planned at plant level only. As soon as you assign a material to an MRP area, the system can plan it in the assigned MRP area separately. What does it mean to assign a material to an MRP area? It simply means adding MRP area-specific data to the material master data. For each MRP area, you can enter individual MRP and forecast parameters that differ from those defined in the material master at plant level, for example, the data required for the planning procedure and lot size calculation. You can also enter historical consumption values for a material in an MRP area if you use forecast calculation for the material in the MRP area. Let's recap. The use of MRP areas for storage locations and subcontractors allows greater differentiation in planning. You can plan separately for each MRP area. By defining specific MRP areas, you can perform precise requirements planning for these areas. The use of MRP areas enables more timely material staging in appropriate quantities, for example, for a specific production line, a spare parts location, or a subcontractor's warehouse. You can assign different planning parameters to a material for each  MRP area to adjust the MRP for these individual MRP areas. Let's take a look at planning with MRP areas with some demos in the system.