PP-PI User Manual

GHAGHRA SUGAR LTD.
PROJECT SMART
PP-PI
USER’S TRAINING MANUAL

Production Planning – Process Industry Users’ Manual
Contents
Topic Page no.
OVERVIEW 3
MASTER DATA
♦ Resources 4
♦ BOM 6
♦ Recipe 6
PROCESS ORDER EXECUTION 8
♦ Creating a Process Order 11

♦ Releasing the Process Order 14
♦ Confirming the Process Order 15
♦ Calculation of overheads 17
♦ Settlement 18
STOCK TRANSFERS 20
• SAP Terminology 20
• Movement Types 20
• Stock Transfer 21
ONLINE INFORMATION AVAILABLE 23

26
ORDER CANCELLATION
• Complete Order Reversal 26
• Partial Order Reversal / Modification 28
32
USEFUL INFORMATION
ANNEXURES 33
I. Resources of all plants. 33

II. Sequence of activities, Principles and Stock 34
Transfers
III. Number range for process orders 35
IV. Sap Data – Bus Area, Plants and Mvmt. 36
Types
V. Master Recipes of all plants 37
Project SMART Ghaghra Sugar Ltd. 2/37

Compiled by ISD, DSCL
OVERVIEW
With the component PP-PI (Production Planning for Process Industries), SAP provides an
integrated planning tool for batch oriented process manufacturing. The following figure
illustrates various functionality offered by PP-PI.
T H E P P-PI L O G IST IC C H A IN
M aterial
a terial fore cas t
forecast S a les/D istrib u tio n
P re lim in ary p lan n in g
relim
P relim ina ry plann in g S ales req uire m ents

D em an d p ro g ram
B
C
A
MRP
Capacity planning
S to ck
Costing
P la nn ed o rd er
C o nversio n to p roc ess ord er
E x ecu tio n o f p ro ces s o rd e r
In w a rd s to ck m o ve m en t
A ccc o un ting (s ettlem en t)
G o od s is su e

MASTER DATA
The master data configured in PP-PI chiefly consists of

1. Resources
2. BOMs
3. Recipes
4. Additional Material Master views
• MRP-1,
• MRP-2,
• MRP-3,
• MRP-4 and
• Work Scheduling
Resources
A resource is used to carry out an operation within a production run. If we want to specify
where an operation is to be carried out, we must enter a resource in this operation. The
resource contains information on the location or area within a plant at which a particular
processing step is carried out. A resource can represent machine or labor resources, for
example, a reactor or an operator.
. Resources contain data used by production such as:

• Costing,
• Scheduling,
• Capacity requirements planning.

Relationship of Resources to Recipes
A standard task list / recipe consists of a series of work steps. To determine where or with
what resources an operation or activity is to be carried out, we must specify a resource.
To simplify the maintenance of operations, we can enter default values for them in a
resource. These default values are transferred into the operation when the resource is
allocated.
Relationship of Capacity to Resource
The term "capacity" refers to the ability to perform a task. In the R/3 System, capacities
define the output that processing units and people, among other things, can provide within
a certain time period. Several capacities can be assigned to one resource, distinguished
by their categories.
Resource capacities, that is, different capacity categories can include:

· Processing unit capacity
· Labor capacity
· Emissions
· Energy
The list of resources created in each plant is given in Annexure-I.

Bill of material (BOM)
A bill of material is a formally-structured list for an object (semi-finished or finished

product) which lists all the component parts of the object with the name, reference
number, quantity, and unit of measure of each component.
In PP-PI the BOM is referred to as Material list and forms part of the recipe.
The BOM or material list contains all the material components required during the
production run, together with their quantity specifications.
RECIPE
In the master recipe, we describe the processes to be used for producing materials in our
plant as well as the resources and ingredients required for production.
In the master recipe, we can plan
· all the resources required for the production of a batch,

· all the materials used in the process & by – products,
· the operations and phases required for executing the process.
Just like material master records, bills of material and work centers, the master recipe is
considered as master data. It describes the processing steps required to produce a
material or provide a service in the process industries.
The master recipe is a resource-specific recipe, used for the preliminary planning of
production processes, and contains the specifications for manufacturing one or more
materials in non-discrete manufacturing processes. It contains operations and data on the
primary and secondary resources required, material allocations, operation texts and
standard values for operations. In a master recipe, you can plan the use of:
· Resources
· Materials
· Capacities
· Costs
· Quantities
required for the process.
In the SAP System, master recipes are used in

· Process Order
· Scheduling
· Capacity Planning
· Costing
The entire list of recipes for all the plants including the Bill of Materials is listed in
Annexure II.

PROCESS ORDER EXECUTION
In a process order, the process described in a master recipe is copied and adjusted to the
concrete production run.
♦Creation: For every material to be produced a process order is to be created on a daily

basis specifying the quantity to be produced .The no. of Process orders to be
created correspond to the no. of master recipes configured in the system e.g. for
Boiler House, the following recipes have been configured.
 Production of Steam 45 KG
 Production of Steam 21 KG
♦ Releasing: The process order is to be released before actual production is carried out.
It is only after the process order is released that the material needed for production is
reserved.
♦ Saving: When the order is saved, the system generates a no. which is to be noted for
further reference.
The number range of process orders for each plant is detailed in Annexure - III.
♦ Confirmation: After actual production, the raw materials consumption / quantity

Produced is confirmed. It is only when the order is confirmed that the system carries
out the goods movements. (Goods issues for raw materials, Goods Receipt for
finished products). Consequently the direct costs get loaded to the product.
♦ Overhead calculation:
The total cost of indirect expenses, indirect labor, and indirect materials (indirect
costs) are termed as overheads. Overhead is allocated to the cost objects by
means of overhead rates that have been defined in CO module.
♦ Settlement: When settlement is carried out, the actual costs incurred for the process
order, are settled to one or more receivers (such as the material to be produced).

The settlement process automatically generates offsetting entries to credit the

process order.

Participants’ Notes:

Step by step procedure for process order Execution
I. Creating a Process Order (COR1)
1. Double click on the menu path Logistics  Production-Process  Process

Order  Process Order  Create  With Material
You can directly access this screen by typing COR1 in the Command Line Box.
Type COR1 here and press enter.
The initial screen for creating a production order appears.
2. Enter the following data:

 Material no.: Enter the material no. of the product.
 Production Plant: Enter plant code.
 Planning Plant: Leave this field empty.
 Process order type: Enter Plant code (The order type defined for each plant
is same as the plant code).
 Process order: Leave this field empty. Press Enter.

Note: Option is available to create a process order by copying an existing order (Enter the
no. of the existing order in the field copy from Process order.
3. Enter the following data:

 Total qty: Enter the quantity to be produced.
 Start Date: Enter the production start date.
 Leave all the remaining fields blank.

4. Press ENTER. The order Finish Date appears. Verify it.
5. Click on icon. The material list appears.

6. Check material consumption figures. To make any changes proceed as follows:
 Enter the revised quantity in the field Requirement quantity.
 To add new material, enter the material no., the quantity required,
storage location, item category (L for stockable material. Press ENTER.
The system prompts for the operation/phase to which the material is to be
allocated, enter the operation number.
 To delete a material, select it and click the Delete icon.
8. Click arrow to return to the header screen of the process order.

9. Click on the Save icon. The system generates the process order number. Note it
down.

II. Releasing the Process Order
1. In creation mode, you can release the process order by selecting Process
OrderFunctionsRelease or by clicking on
It is also possible to release the order after saving it. You can directly access this screen
by typing COR5 in the Command Line Box.
Select Logistics  Production-Process  Process Order  Process Order 

Release.
1. Enter the following data
 Order Type: Enter plant code

 Plant: Enter plant code
 Process order: Enter the process order number (which was
generated when the order was saved)
 Leave all the other fields empty.
2. Click on Execute icon .
3. Select the order and click on Release icon .

III. Confirming the Order
Select Logistics  Production-Process  Process Order  Confirmation  Enter

for Order
1. Process Order: Enter the Process Order no. to be confirmed. The main screen for
confirmation appears.
2. Select whether partial or final confirmation is to be processed by the system.
3. Yield to confirm: Enter production quantity to be confirmed.
4. Enter your Personnel Number.
5. Change the Execution start and Finish execution dates and times.

6. Enter the Posting Date. This date is the date of production. For e.g: for a production of
6000 QTL of Gomti Sugar M-30 from 23.12.01 6:00 AM to 24.12.01 6:00 AM, the
posting date would be 23.12.01.
7. Click on the Goods Movement icon. The planned consumption

values as per the BOM are displayed.
8. Check consumption quantities and make any changes as required.
9. Click on the Save icon. The confirmation is saved.

IV .Overhead cost calculation
Select Logistics  Production-Process  Process Order  Period-end closing 

Overhead costs  Individual Processing
The initial screen for overhead calculation appears. Enter the following data.
Note: Enter Controlling area as 5000, when accessing this screen for the first time.
Order : Number of the process order for which the overheads

are to be loaded.
Period : Financial period
Fiscal year. : Financial year.
• Deselect the Test Run field.
• Click on the execute icon.
The overheads are calculated and the completion message appears. Click on to
return to main screen.

V . Settlement
Select Logistics  Production-Process  Process Order  Period-end closing 

settlement Individual processing.
The initial screen for the settlement appears .Enter the following data .
Order : Number of the process order for which the overheads

are to be loaded.
Processing : 1 (ie automatic).

type.

• Click on the execute icon. The orderis settled and the completion message appears .


Stock Transfer
BUSINESS AREA
Business areas are primarily used to facilitate external segment reporting across
company codes, covering the company's main areas of operation (product lines,
branches).
PLANT
A plant is a unit within a company that produces or makes available material or

renders services.
STORAGE LOCATION
An organizational unit that allows differentiation of material stocks within a plant.
MOVEMENT TYPES
When you enter a goods movement in the system, you must enter a movement
type to differentiate between the various goods movements. A movement type is a
three-digit identification key for a goods movement. The following table contains
examples of movement types.
Goods movement Movement type

Goods receipt for a purchase order 101
Goods issue for a cost center 201
Release from quality inspection stock 321
Control Functions of the Movement Type
The movement type has important control functions in Inventory Management.

For example, the movement type plays an important role in
o updating of quantity fields

o updating of stock and consumption accounts
o determining which fields are displayed during entry of a document in the
system
A list of business areas, plants, storage locations and movement types relevant to
production planning is given in Annexure V.

Material produced in one plant through a process order may need to be consumed
in another plant (e.g: Power) or sold through another plant (e.g: Bagasse). In some
other situations, the stock needs to be moved between storage locations to enable
further transactions to be performed on it (e.g: Gomti Sugar)
To enable this cross plant, SAP provides manual goods movements to be done
between plants or between storage locations.
Stock Transfer
Select Logistics  Materials Management  Inventory Management 

Goods Movement  Transfer Posting (Tcode: MB1B)
Enter the following data:
Document date: The date on which the document will be recorded.

Posting date: The date of actual transaction
Movement Type: 301 for Inter plant transfer

311 for Inter storage location transfer
Plant: The plant from which material is to be transferred

Storage location: The storage location from which material is to be transferred
Click on Enter to open the transaction screen.

Receiving plant: Plant to which the material is to be transferred.

This is missing in case of Storage Location Transfer.
Receiving Sloc.: Storage Location to which material is to be transferred.
Material: Code of the Material that is to be transferred.

Quantity: The quantity of the material that is to be transferred.
Click on Save icon to save the document and post the transaction.

Online Information Available
1. Costs :
The cost of production can be viewed in create/change mode of Process order as

follows:
Goto  Costs Analysis
Note: During creation phase, select Process Order  Function  Determine Costs
Various options for comparison of Planned Vs Actual costs are available.
Note: Before an order is confirmed, through the same menu path, the planned
(Budgeted) costs can be viewed.
3. Production Reports

From SAP main screen, select Information Systems Logistics

Production. Then select Material. The various reports available are
• Dates (Deviations between planned and actual production dates)

• Quantities (Planned and actual production quantities)
• Product Costs (Planned and actual costs)
• Material Usage (Planned and actual material usage)
Note: In these reports, we can view the information at different levels viz.
Company, plant, material, order or date. Standard analyses viz. ABC,
Comparison, Classification etc. are also available.
4. Cost Sheet
This report provides the cost sheet as required by Accounting / MI for all the
semi-finished / finished products. The information includes direct and indirect
costs, compiled in a monthly format.
Information for the previous month and the total record till this date of the year
are also provided for comparison and analysis.
Information System  CO Reports  Reports  Cost Sheet

You could use transaction code ZC01
Enter the following data.
Controlling Area: 5000
Material No.:
Month (Actual): Month for which the material cost is required
Year (Actual): The year for which the report is being run.
Click the execute icon.
5. Quantity Efficiency
This report provides the per ton consumption quantities of all the input material
required to produce the semi-finished / finished product, there by providing an
indication of the process efficiencies.
Information for the previous month and the total record till this date of the year
are also provided for comparison and analysis.
Information System  CO Reports  Reports  Quantity efficiency

You could use transaction code ZC02.

Controlling Area: 5000
Material No: Material for which the input efficiency is to be calculated
Month (Actual): Month for which the material cost is required
Year (Actual): The year for which the report is being run.
Click the execute icon.

ORDER REVERSAL
Caution: A wrongly confirmed Process order needs to be cancelled as soon as

possible. A delay in the reversal of process orders would result in the
price of the semi-finished / finished products going haywire and might
lead to a situation where the price becomes negative.
Complete Order cancellation
Before doing order cancellation, reverse the order settlement and overhead
calculations.
1. Reversal of Order Settlement:
Select Logistics  Production-Process  Process Order  Period-end closing

 Settlement  Individual processing.
The initial screen for the settlement appears. Enter the following data .
Order : Number of the process order for which the overheads are
to be loaded.
Processing type. : 1 (ie automatic).


• Select Settlement  Reverse. The settlement is reversed and the completion
message appears .
• Click on to return to main screen.
2. Reversal or Overhead Calculation:
Select Logistics  Production-Process  Process Order  Period-end closing

 Overhead costs  Individual Processing
The initial screen for overhead calculation appears. Enter the following data.
Note: Enter Controlling area as 5000, when accessing this screen for the first time.
Order : Number of the process order for which the overheads are to be
loaded.

• Select Overhead Calculation  Reverse. The overheads are calculated and the
completion message appears. Click on to return to main screen.
3. Cancellation of Process Order Confirmation:
Select Logistics  Production - Process  Process Order 

Confirmation  Cancel (Tcode: CORS)
Enter the Process Order Number that needs to be cancelled.
A warning message appears asking you to confirm your intent to cancel the
order. Click on Yes.
The Process Order opens in display mode.
Note: You cannot change / modify any quantities in this procedure.
Click on Goods Movement icon to view the list of all materials

and quantities.
Click on Save icon. Enter the text for reason of cancellation and click on to
cancel the order.
Note: Open the Process Order Confirmation display (Tcode: XXXX), select
the cancellation entry and click on Goods Movement to determine
whether all the reversals have been successfully posted.
Partial Order Modification / Cancellation:

In certain cases, it is not necessary to cancel the entire order confirmation. For
these instances, manual goods movement can be employed to produce the results
desired.
Note: Before proceeding with the goods movement, reverse the Process Order
Settlement and Calculation of Overheads as illustrated above.
Case I: Additional Production or Decrease in Production keeping all

the other components constant.
• Open the Goods Receipt for Order as follows:

Logistics  Materials Management  Inventory Management 

Goods Movement  Goods Receipt  For Order (Tcode: MB31)
• Enter the Document Date and the Posting Date as required. The
posting date has to be the same as that of the order confirmation
posting date.
• Enter the following data:
Delivery Note: -/-
Doc Header Text: -/-
Movement Type: 101 for Production increase
102 for Production reduction
Plant: Plant of production
Stor. Location: Concerned Storage Location
• Click on Enter.
• On the details screen, modify the quantity as desired and click on
icon.
• Enter the following string in the text field.
-/-/-/xxx

Note: xxx is a string of 3 characters. You can input your own 3 chracter
string to help you identify the transaction later.
• Click on Save icon to post the transaction.
Note: Open the process order in the display mode (Tcode: COR3) to
confirm the change, and then proceed to calculate overhead costs and
order settlement, as illustrated above.

Case II: Modification or reduction in input components
• Open the Good Issue Screen as follows:

Goods Movement  Goods Issue (Tcode: MB1A)
• Enter the following data:

Posting Date and Document Date: Date of Production
Movement Type: 261 for additional consumption
262 for reduction in consumption
Plant: Plant of consumption
Storage Location: Concerned Storage Location
• Click on Enter.
• On the details screen, enter the following
Order: Process Order Number
Material: Input Material Code
Quantity: Modification quantity
• Click on Save icon to post the transaction.
Note: Open the process order in the display mode (Tcode: COR3) to
confirm the change, and then proceed to calculate overhead costs and
order settlement, as illustrated above.
Case III: Modification or reduction in by-product production.
Adopt the same method as Case II, changing the movement type to 531 (for
additional production) or 532 (for reduction in production).

USEFUL INFORMATION
• Material Stock: Use this report to verify the total stock available across plants
for a given material.
Environment  Stock  Stock Overview (Tcode: MMBE)
• Stock for posting date: Use this report to

o View opening and closing stock for a particular period
o Total postings per movement type
o Analysis of material documents
Environment  Stock  Stock for Posting Date (Tcode: MB5B)
• Stock Check: During order confirmation, in the goods movement

screen, position cursor in the plant / storage location field for any material and
press F4 button on your keyboard. A window appears listing the stocks
available for that material across plants / storage locations.
• Unable to release order: Open the material (Tcode: MM03) in display mode
and check if the MRP views for that material have been maintained.
• Production taking more than 24 hours: Open the material in display mode
and check the quantity entered in the work scheduling view is correctly entered
or not.

ANNEXURE I – RESOURCES
WrkCntr Plnt Cat Resp. Description
BOILER21 GBH1 0008 PBH BOILER FOR 21 KG STEAM
BOILER45 GBH1 0008 PBH BOILER FOR 45 KG STEAM
DMPLANT GBH1 0008 PBH DEMINERALISATION PLANT
MILLING GMIL 0008 PME CANE MILLING
DGSET GPP1 0008 PEL DIESEL GENERATOR SET
TURBINE GPP1 0008 PEL TURBINE FOR POWER

PRODUCTION
PROCESS GSPP 0008 PHP SUGAR PROCESS PLANT
PACKING GSSC 0008 PHP SUGAR PACKING

ANNEXURE II
SEQUENCE OF ACTIVITIES, PRINCIPLES AND STOCK TRANSFERS
Process Orders have to be confirmed in the following order
1. DM Water Production
2. Steam 45 KG Production
3. Steam 21 KG Production
4. Power Internal Generation (Power through DG Set if required)
5. Mixed Juice Production
6. Loose Sugar Production
7. Gomti Sugar Packing (all grades)
Some of the materials are moved across plants for either consumption or sale.
Depending on the business area, the materials have to be either manually moved
across plants or moved manually through stock transfer posting.
Materials for Transfer Posting
Material Sending Plant /Sloc. Reciving Plant / Sloc.

Power Internal GPP1/GPP1 GSPP/GSPP
GMIL/GMIL
Bagasse GMIL/GMIL GBH1/GBAY
Steam 45 KG GBH1/GBH1 GMIL/GMIL
Steam 21 KG GBH1/GBH1 GSPP/GSPP
Steam 1.25 KG GPP1/GPP1 GSPP/GSPP

GBH1/GBH1 GSPP/GSPP
Condensate GSPP/GSPP GBH1/GBH1

Materials moving automatically through process order

The following materials are directly consumed in the process order from their
original plant of production. To do this, change the plant and the storage location of
the materials in the process order confirmation, goods movement screen. The
movement across plants happens automatically.
Material Order Plant / Sloc. Changed Plant / Sloc.

Power Internal GBH1/GBH1 GPP1/GPP1
Steam 45 KG GPP1/GPP1 GBH1/GBH1
Mixed Juice GSPP/GSPP GMIL/GMIL
Loose Sugar GSSC/GSSC GSPP/GSPP

ANNEXURE III – PROCESS ORDER NUMBER RANGES
Plant Order Type Number Range

GBH1 GBH1 120000001 - 122000000
GPP1 GPP1 122000001 - 123000000
GMIL GMIL 118000001 - 119000000
GSPP GSPP 119000001 - 120000000
GSSC GSSC 123000001 - 125000000

ANNEXURE IV – PROCESS ORDER NUMBER RANGES
Business Area Plant

SGPW GBH1
GPP1
SGSU GMIL
GSPP
GSSC
Movement Type Description
101 Goods Receipt

102 Goods Receipt – Reversal
261 Goods Issue for Consumption
262 Goods Issue for Consumption – Reversal
531 Goods Receipt By-product
532 Goods Receipt By-product - Reversal


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GHAGHRA SUGAR LTD.

USER’S TRAINING MANUAL

Topic Page no.

PROCESS ORDER EXECUTION 8

♦ Creating a Process Order 11

ONLINE INFORMATION AVAILABLE 23

I. Resources of all plants. 33

Project SMART Ghaghra Sugar Ltd. 2/37

P relim ina ry plann in g S ales req uire m ents

C o nversio n to p roc ess ord er

E x ecu tio n o f p ro ces s o rd e r

A ccc o un ting (s ettlem en t)

Project SMART Ghaghra Sugar Ltd. 3/37

The master data configured in PP-PI chiefly consists of

. Resources contain data used by production such as:

Project SMART Ghaghra Sugar Ltd. 4/37

Relationship of Resources to Recipes

Relationship of Capacity to Resource

Resource capacities, that is, different capacity categories can include:

The list of resources created in each plant is given in Annexure-I.

Project SMART Ghaghra Sugar Ltd. 5/37

Bill of material (BOM)

A bill of material is a formally-structured list for an object (semi-finished or finished

In the master recipe, we can plan

· all the resources required for the production of a batch,

In the SAP System, master recipes are used in

Project SMART Ghaghra Sugar Ltd. 7/37

PROCESS ORDER EXECUTION

♦Creation: For every material to be produced a process order is to be created on a daily

♦ Confirmation: After actual production, the raw materials consumption / quantity

Project SMART Ghaghra Sugar Ltd. 8/37

The settlement process automatically generates offsetting entries to credit the

Project SMART Ghaghra Sugar Ltd. 9/37

Project SMART Ghaghra Sugar Ltd. 10/37

Step by step procedure for process order Execution

I. Creating a Process Order (COR1)

1. Double click on the menu path Logistics  Production-Process  Process

Type COR1 here and press enter.

The initial screen for creating a production order appears.

2. Enter the following data:

Project SMART Ghaghra Sugar Ltd. 11/37

3. Enter the following data:

Project SMART Ghaghra Sugar Ltd. 12/37

4. Press ENTER. The order Finish Date appears. Verify it.

5. Click on icon. The material list appears.

8. Click arrow to return to the header screen of the process order.

Project SMART Ghaghra Sugar Ltd. 13/37

II. Releasing the Process Order

Select Logistics  Production-Process  Process Order  Process Order 

1. Enter the following data

 Order Type: Enter plant code

2. Click on Execute icon .

3. Select the order and click on Release icon .

Project SMART Ghaghra Sugar Ltd. 14/37

III. Confirming the Order

Select Logistics  Production-Process  Process Order  Confirmation  Enter

2. Select whether partial or final confirmation is to be processed by the system.

3. Yield to confirm: Enter production quantity to be confirmed.

4. Enter your Personnel Number.

Project SMART Ghaghra Sugar Ltd. 15/37

7. Click on the Goods Movement icon. The planned consumption

8. Check consumption quantities and make any changes as required.