Understanding GR Processing Time in SAP PP

In the fast-paced production planning (PP) world, ensuring efficient material flow is crucial. SAP PP offers various functionalities to streamline this process, and understanding GR (Goods Receipt) processing time is essential.

What is GR Processing Time?

GR processing time refers to the time SAP takes to process incoming goods after they arrive at your warehouse. This includes activities like:

• Verifying delivery documents
• Inspecting goods
• Updating inventory records

Why is GR Processing Time Important?

An accurate GR processing time is essential for several reasons:

• Lead Time Calculations: These factors affect the overall lead time for materials, impacting production scheduling and MRP (Material Requirements Planning).
• Resource Planning: Knowing the typical processing time helps allocate appropriate resources (personnel, equipment) for deliveries.
• Inventory Management: Faster processing translates to quicker stock updates, ensuring accurate inventory levels.

How is GR Processing Time Defined in SAP PP?

SAP allows you to define GR processing time in two ways:

1. Material Master:  In the “GR/GI” tab of a material master, you can specify a processing time in workdays (e.g., two days).
2. Scheduling with Handling Resources: For more granular control, you can define a handling resource specifically for GR processing. This resource would have its own operating time (working hours) and assigned calendar. The system then schedules the GR activity based on this information.

Benefits of Using Handling Resources:

• Calendar Integration: Accounts for weekends and holidays in your factory calendar.
• Operating Time: Considers the specific working hours of your GR personnel.
• Scheduling Flexibility: Enables more precise scheduling of GR activities within production plans.

Conclusion

By understanding and effectively managing GR processing time in SAP PP, you can achieve the following:

• Improved Lead Time Accuracy: Leading to more realistic production schedules.
• Optimized Resource Allocation: Ensuring efficient use of personnel and equipment.
• Enhanced Inventory Management: Maintaining accurate stock levels for better production planning.