Streamlining Production: Automatic Goods Issue in SAP PP

In the fast-paced world of production, efficiency is critical. One area for improvement is goods issue processing for components in a production order. While manually creating goods issue (GI) postings can be time-consuming and prone to errors, SAP PP offers functionalities to automate this process.

Why Automate Goods Issue?

There are several advantages to automating goods issue in SAP PP:

• Reduced workload: Automating GI frees up valuable time for production planners and allows them to focus on more strategic tasks.
• Improved accuracy: Eliminating manual data entry minimizes the risk of errors associated with goods issue postings.
• Enhanced efficiency: Automatic GI streamlines the production process and reduces overall lead times.
• Real-time inventory updates: Automatic GI postings ensure that inventory records are updated immediately, providing a more accurate picture of on-hand stock levels.

Achieving Automatic Goods Issue

SAP PP offers two primary methods to automate goods issues:

1. Backflushing is the most common approach. It allows you to define specific components in the bill of materials (BOM) or work center, which will be automatically issued when a production order is confirmed. The configuration for backflushing can be done at the material master level (MRP 2 view) or work center level (confirmation parameters in transaction OPK4).
2. Confirmation Parameters (OPK4):  This transaction allows you to define plant- and order-type-specific settings for automatic goods movement during production confirmation. You can automatically issue “all components” or only specific components based on pre-defined criteria.

Important Considerations

Before implementing automatic goods issue, it’s crucial to consider the following:

• Inventory control: Ensure robust inventory control procedures to prevent stock discrepancies.
• Material valuation: Determine the appropriate valuation method for automatically issued components.
• Production monitoring: Establish clear procedures for monitoring and managing automatic GI postings.

Conclusion

Automatic goods issue in SAP PP is a powerful tool that can significantly enhance production efficiency and accuracy. Organizations can streamline their production processes by leveraging backflushing and confirmation parameters and free up valuable resources. Consider the implications carefully before implementing automatic GI to ensure it aligns with your production requirements.