Unplanned Goods Issue in SAP PP: A Necessary Flexibility

In Production Planning (PP) within SAP, things sometimes go differently than planned (pun intended). Unforeseen situations on the shop floor might require you to deviate from the perfectly optimized production schedule. This is where the Unplanned Goods Issue (UGI) functionality in SAP PP comes in handy.

What is an Unplanned Goods Issue?

Unlike a Planned Goods Issue, which is tied to a production order reservation and automatically deducts materials based on the Bill of Materials (BOM), a UGI allows you to issue materials without any prior reservation manually. This provides flexibility to handle situations like:

• Unexpected material requirement: During production, you realize an additional component that should have been included in the original BOM is needed.
• Excess material usage: Production may use more of a specific material than anticipated.
• Scrapping or sampling: You might need to issue materials to scrape defective items or for sampling purposes during quality checks.

How to Perform a UGI?

There are a few ways to perform a UGI in SAP PP:

• MIGO Transaction: In the MIGO transaction for goods movement, you can choose the “Others” option and manually enter the material details, quantity, and account assignment.
• MB1A Transaction: When using MB1A for a production order, the second screen can enter components that haven’t been reserved. This creates a UGI for those specific items.
• CO11N/COR6N Transactions: During production confirmation in CO11N or COR6N, you can directly enter component materials for a UGI.

Important Considerations for UGIs

While UGIs offer flexibility, it’s crucial to use them judiciously. Here’s why:

• Inventory Discrepancies: Frequent UGIs can lead to discrepancies between planned and actual inventory levels.
• Production Costing Issues: Unplanned material usage can impact production cost calculations, making it difficult to track actual production expenses.
• Traceability Challenges: Tracing the source of unplanned material usage can hinder quality control investigations.

Best Practices for UGIs

Here are some tips to ensure responsible use of UGIs:

• Define clear guidelines: Establish guidelines for when UGIs are appropriate and who is authorized to perform them.
• Investigate root causes: Analyze reasons behind UGIs to identify and address any recurring issues in the production process.
• Regularly reconcile inventory: Conduct periodic inventory reconciliations to identify and rectify any discrepancies caused by UGIs.

Conclusion

Unplanned Goods Issue is a valuable tool in SAP PP for handling unforeseen situations on the shop floor. However, using it responsibly with proper checks and procedures helps maintain accurate inventory levels, cost control, and traceability within your production processes.