SAP SD PP: Understanding the Essential Integration

SAP’s Sales and Distribution (SD) and Production Planning (PP) modules function as a powerful, integrated backbone for many enterprise operations. Understanding how these modules work together is vital for streamlining order-to-delivery processes and ensuring smooth business fulfillment.

Key Points of Integration

Let’s explore the primary areas where SD and PP collaborate:

• Demand Management: Sales orders in the SD module feed directly into the PP module’s demand planning. This triggers the production process by identifying customer needs and the quantities to be manufactured.
• Availability Checks (ATP): ATP (Available To Promise) ensures that the SD module can make reliable commitments to customers. It works by cross-referencing current stock levels, planned production, and incoming purchase orders within the PP module.
• Materials Requirements Planning (MRP): MRP is the engine within PP that reacts to demand. It calculates raw material needs based on the sales orders from SD and a material’s Bill of Materials (BOM). MRP further generates planned orders or purchase requisitions to fulfill the requirements.
• Production Orders: Planned orders generated by MRP within the PP module can be converted into production orders. These production orders hold the detailed instructions on what to produce, quantities, and timelines. They also trigger materials consumption and labor tracking.
• Goods Receipt: Once a production order is completed, the finished goods are received into inventory within the PP module. This stock update triggers availability within the SD module for sales orders to be fulfilled.

Configuration Touchpoints

Proper system configuration is essential for tight SD-PP integration:

• Schedule Line Categories: Within SD, schedule line categories determine how requirements are calculated and passed to PP. They control ATP checks and influence production planning strategies.
• MRP Types and Strategies: MRP types within the material master (MRP views in SAP) dictate how a material is planned. Make-to-Stock (MTS) scenarios usually rely on forecasts, while Make-to-Order (MTO) depends directly on sales orders.
• Requirements Classes: Tied to MRP strategies, requirements classes link demand from SD into specific planning processes in PP.

Benefits of Tight SD PP Integration

A well-oiled SD PP integration delivers numerous advantages:

• Improved customer service: Accurate availability checks and on-time production lead to increased customer satisfaction.
• Enhanced inventory management: Avoid stockouts and overstocking by balancing production with real demand.
• Optimized production scheduling: Prioritize manufacturing based on firm customer orders and reliable demand forecasts.
• Streamlined supply chain: Efficient communication across departments eliminates bottlenecks and reduces errors.

In Conclusion

The integration between SAP SD and PP is the foundation of a responsive and customer-centric manufacturing process. Mastering this synergy allows organizations to improve delivery performance, control costs, and ultimately achieve competitive advantages.