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hey guys welcome back to my channel it's happy with ik hope you're all doing good so today's topic will be on the sales and operations planning and we'll try to understand what is basically an sop and how to create uh the planning or maybe the forecast based on the past uh consumption or the past sale history and we'll also discuss on how to transfer the snop data into the demand management so let's get into sap and uh start creating this [Music] I've been receiving several requests and comments from most of our viewers and they are basically asking about the topics that were already covered in the past so for each and every video that I post in the channel we basically have you know if you go into the details of this particular video let's say and if you just come down under the description so here so I have provided you know the direct links for each of these topics where you can click and directly go into that corresponding video so all the videos that I have uploaded so far uh in our Channel have been placed under the description of each and every video not just uh the latest ones but right from the beginning I've been doing so I'm not sure uh how many of you are basically noticing this but you do have the entire content available under these uh description of every video so please do use this uh information that has been provided here so look for your topic and just click on this link that has been provided so that it navigates you to the exact video hope this helps thank you so here I'm in sap so let me go to the path of the sales and operation planning so here we see the logistics and then we have production so under production we have a folder for sop or this uh sales and operation planning so the SOP can basically be created at a product group level or you also can create this at a particular at a single material right so if you look at the planning folder we do have a few options to plan the entire product group or maybe for a particular material so the first step in the SOP is basically to create a product group but because the product group is basically uh it holds you know uh the set of materials that belong to a particular a product group so let's say uh in uh in an fmcg industry we do have a few products let's take an example uh like we have beverages we have Mill products and we also have chips or maybe baked items so under these particular categories we also have several products right so these products can be categorized into a particular group and then the SOP or the sales and operations planning can be performed based on its uh previous uh consumption data or maybe the sales data right on the historical side So based on the historical data we are going to plan it for the future months so in order to create a product group we can directly go to this path from here to create a product group so here let's say I'm going to create a product group for the apis so since we are into the I mean we'll take an example of the Pharma company and uh for the apis I'm going to create a product group so it would be PRD underscore grp underscore apis so this will be the product group for pharmas sorry for apis for API and this will be in the plant 1000 and we should also make sure that the base unit is going to be the same for all the products lying under this particular product group so this would be in the base unit of a kg and what will be the members on the under this product group so am I going to add a few other product groups under this particular product group PRD grp API or would it be individual materials so now I'm going to choose it as materials and then hit on enter so usually we see this error message saying that this field is defined as a required field in it does not contain an entry so we do have an uh an OSS node uh that has been provided uh with a few possible options but if that is still not working then the other way is basically to go with the creation of the product group from mm01 transaction so you know I mean you might be familiar with this transaction where we create a material Master but here we are going to choose the industry and also the material type so here my industry is going to be a Pharmaceuticals and the material type is going to be a product group so um I'm searching for that yeah we have the material type as prod okay and once you hit on enter or maybe uh before that we can provide the material code as well so PRD underscore grp underscore API so this is my material group sorry the material code for the product group and you can see that we have actually uh got four views just uh four views for this material type and again it's basically a standard configuration and it has been defaulted for this particular material type Pro OD so I'm going to choose all these and continue and the plant will be one thousand and here I'm going to provide the description so the similar way that we have done in the other transaction so the same way we are going to do it here as well so product group for API in thousand and the base unit would be kg and the purchasing group MRP type PD I mean since you would like to go with the execution of MRP for this particular product group we are going to choose the MRP type as PD and then you have the lot size and the MRP controller and then the procurement type let's say I'm going to give it as e and few other mandatory parameters and finally mrp4 so we have extended all four views and then save the material so now we have the material PRD underscore grp underscore API created which is basically our product group for apis so now let's go back and start creating a group for that so I'm going to go back to the easy access and here since we have already created the product group I am not going to use it again but I'm going into the change transaction and here we see this product group right and the plant now hit on enter so the members should be as materials right so then continue so here is where we can assign several materials that fall under this particular group of apis so for now I'm going to use a few materials API and the plant is thousand and then p i Dash CRM in Thousand again and tfv and tfv100 and 300. right so now here uh we could see that all these members are the material codes that we have entered under this group are having the same unit of measure right as kgs enough you can also see the proportional uh Factor over here right so we'll discuss about this with few more examples once we go into the scenarios but for enough I'm going to leave it as 0 and then save it so it says that the sum of the proportional factors is the zero percentage do you want to continue yes so now the product group has been created with the following members so the next is basically to start creating the plan or the SOP plan for the product group so I'm going into this particular folder to create the product group so here we are now going to create a plan for this particular product group now hit on enter and it will always ask you to create a new version whenever you're going to create a plan for the product group so now we are going to use the version zero zero eight which is a new version and it is an inactive version so now here we can see few periods like starting from March 2023 uh till Feb 2024 so the total period is around 12 months so enough uh for the sales I'm going to based on the historical data I'm going to plan the sales for this particular product group let's say in a thousand kgs in the month of March and then in the month of April I'm going to make it 1100 kgs and then 1200 and then 1300 so this is my sales plan now coming to the production plan how do you want to have the production orders we created for this uh items under this particular product group right so what should be the quantity of those production batches so for that reason there are a few ways how we can calculate it one is basically if you always would like to have a stock uh in the plant uh in each of these monthly buckets so then you also can enter the Target stock levels it means that system will make sure that the Target stock level is always made available in the plant apart from the sales requirement or the sales plan right so let's say I would like to always have a stock level of 100 kgs in every month once you enter the Target stock level and hit on enter and before I hit on enter you can see the stock levels here right so it says that we have a requirement of 1000 kgs but there is no procurement proposal planned yet for this particular month March 2023 bucket so the stock level is in is under the deficit of 1000 kgs and when we move on to the next month of April we could see a deficit of minus 2100 kgs so that would be a sum of the previous months stock levels and and also the requirement of this month April so that would be 2100 and if we move on to the next month of May it would be uh the sum of the total stock levels which is minus 2100 and also the requirements we have in May so that makes it like in 3300 so it goes on you know in an incremental way unless we create a production plan uh for this so now the production plan let's say I'm going to use it as 500 so I'm going to uh plan the production for 500 kgs in the month of March perspective of the sales requirement or the Target stock levels so now hit on enter now you could see that the stock levels have varied a bit right why because the production has been planned for 500 and the requirement is 1000. so now after meeting the requirement the stock level is still under deficit of 500. so that has been again added to the next month's requirement that makes it 1600 and the same way right so if I start you know adding this production plan let's say 600 and then you have 700 so the same with the calculation it goes on based on the production plan so instead of adding this production plan you know we always uh tend to manufacture the item based on the requirement from the sales right so for that uh we have a flexibility to basically create this production plan ing to the sales requirement so for that you have to select this planning table I mean the row in the planning table for production and then go to edit and then go to this option to create the production plan and choose his option as synchronous to sales so which means that your your production plan is going to be same as your sales requirement so if I click on this you could see that the production plan has been made in sync with our sales requirement okay but if I choose the production plan to be somewhat based on the Target stock level so then choose it and you could see that your Target stock level is 100 which is again a requirement for the plan and your sales requirement is 1000. so which makes it you know the production plan should be ing to your Target stock level as well I mean it should meet both your requirements from the sales and also the Target stock levels so for that reason the production has been increased to 1100 from 1000 okay so upon increasing this then the stock level in the plant is going to be 100 which meets the requirement of your Target stock level in the same continuous uh in the subsequent months so let's say my Target stock I'm going to make it as 150 in the month of April and then 200 in May and then 250 in June so now I'm going to rerun the uh a production plan based on my Target stock level so now you can see so now the production plan has been adjusted to make sure that the Target stock level is met along with the sales plan okay so now I'm going to go with it synchronous to sales so if I go in sync with the sales and then the stock level in the plant is nothing right why because we are just meeting the requirement uh from the sales and we are not bothering about the Target stock level okay so now I'm going to change it back to the Target stock level so this is the plan we have made for the months starting from March 2023 to June 2023 so we have our sales plan and we also have our production plan so now let's save it so now the plan has been saved under this particular version zero zero eight so now I'm going into the change mode and if you click on the active version and the inactive version so let's see what happens in the active version you always have the active a version defined as a001 right so whenever we are going to create a plan I mean since it is not finalized it or not confirmed by the planning team we are always going to create it as an inactive version and that would not be part of an active version so I'm going to go back and then click on inactive version so now system is going to ask me which of these inactive versions you would like to use so I'm going to use 008 so we have the plan here and before I go into the transfer of demand uh let's look at the product group so I'm going into a new window again Logistics production sop and then you have the product group whenever I'm going to choose display so under the display product group you can see we have this four items or four semi-financed or finished products so enough I would like to go into the md04 just to show you the stock levels for one of the product so we are talking about API so for API we have an available quantity of 300 in the stock and know the requirements exist for this the same way if I choose the second one Pi Dash cerm so Pia Dash C RM has nothing we have zero stock and then the third one f300 nothing here as well and the same way for FV 300 . nothing here right so now let's go back okay so now let's try to transfer this data the sales data or the production data into the demand management so to transfer the data into a the demand management like you know in the standard demand management we should basically assign a strategy group for the material master so if I go into the details of this material fv100 B2 have this strategy group assigned as 10 which is nothing but the make to stock so we expect to see uh independent requirement with the requirement type as lsf which basically supports the make to stock scenario so I'm going to yeah this is one prerequisite where you have to define the strategy groups in all the of these products right right that is when you will have a proper or a consistent uh demand plan so now I'm going to transfer the sales data or the production data into the demand management so let's say if you would like to transfer the sales data right then choose this uh row on in the planning table for sales and then click on Extras and then you have the option of transfer to demand management so save the planning values first okay and do it one more time yes and now you can see that the version is an inactive version right zero zero eight from which we are basically transferring it and here we do have a few options for the sales plan for material or pgp PG basically stands for a product group and then the product group members as a proportion of the product group so we do have these two options for the sales plan and these two options for the production plan so since we have planned to go with the sales plan for now I'm going to choose this second radio button to go with the proportion of the product group for the sales plan and here we have to provide the requirements type so I'm going to make it make it as lsf and the version is 0 1. and the from period and two period uh this is uh optional I mean to say the two period is optional why because the entire plan that you have created it will be transferred uh if you have not specified any particular limit but you have want to just transfer only one period Then you can provide the uh two period as as well right so now click on transfer so now it it tells us that the planning version need to be transferred is not a active version okay so now we see this warning message or maybe a log saying that all these materials they have a few demand management uh already existed and that has been deleted and the new one has been loaded with the requirement type as lsf right so now I'm going into the md04 let's take this example FV 100 and now I'm going to refresh it so we don't see any demand plan created yet for these materials right so let's check another material API so there is no even a demand plan created for either of these materials so the reason is that if we go to the display of the demand plan in MD 63 and then I choose all active and inactive versions or maybe you can go to the product group directly so here are broad group let me just copy it and go to the product group select the second radio button and then so the reason we don't see any requirement plans under these materials is that we have transferred the data from the inactive version right so the version that we just copied or maybe you know transferred from on the SOP to the demand management is an inactive version that is the reason it is not transferring the data into the demand management so let's go back and see how to make this I mean how to transfer the data from inactive uh version to a active version so for that we are going to use this option this particular transaction mc88 to basically copy the version right so click on that and then you have to choose the inactive version which is zero zero eight and then I'm going to copy it into the active version which is a 0 0. so now I'm going to choose the period where I mean for which the data should be basically copied so I'm choosing it from March 2023 till December 2023. and then click on copy Okay click on yes so once it is done we can go back to the planning for the product group and go into that change or maybe the display so let's go into the change mc82 that's the transaction here we have the product group so now we see the inactive versions which is eight and you can see that we already planned with the sales and also the production data so now if I go back and look at the Active version so you can see that the same has been copied to the active version a 0 0. right and now we are going to transfer this sales data into the demand management so go go to extras and then click on transfer to demand management you'll have to do it twice Okay so it should be the proportion of PG right and then just click on transfer now the requirement was already available so now let's go to the md63 and look at the Active version data so here we do see the demand plan I mean that has been entered but there are no values for the schedule lines so there are no schedule lines or and also the quantity that we have updated here right in the active version so that is not being transferred into this so what is the reason for that so there is the main reason for that is basically with the master data right so I'm I'm going back one step it's enough go into the details of the product group and go into the change of mode of the product group mc86 so this is a product group and here we have defined the proportion as zero percentage right so the value is always in the percentage here so that is the reason system is not giving us any output in the demand management so then the planned value of this particular demand sorry the snlop let me go back to that for product group display so here the total quantity of 1100 kgs so we are since we have defined it as zero a proportion so nothing has been actually transferred into the demand plan so if you would like to transfer the entire data based on your sales plan to this particular product group or the materials so then you should maintain it as a 100 percent right so I'm making it as 100 so it means that the total plan should be with the proportion of hundred percent for this particular material API so let's say you would like to only transfer a 50 percent for this particular material pi cerm so then the proportional Factor should be as 50. and remaining let's make it at 100 and again 100 so now let's see how this works so I'm going to save it so it says that the sum of the proportional factors is 350 percentage so which is nothing but the cumulative of all the proportions for the members or the material codes that are part of this product group so then I'm going to click on yes continue enough we'll go to the planning okay go into the change okay we are in display so now go to the planning mc82 active version it's enough do the same thing transfer to demand management okay we have the sales plan as proportion of the product group transfer now requirement was made available so I'm going to go back to MD 63 all active versions so now you can see that the demand plan has been created for all these members of the product group based on our sales plan so if I just bring this sales plan over here I'll go to the display active version so here for the API since we have defined the proportional percentage as a hundred so the total uh sales plan of 100 in the month of March and 1100 in the month of April and 1200 for May and 1300 for June has been completely transferred uh to this particular material and whereas for the second member the pi Dash cerm so for this we just Define the proportional percentage as 50 right so that's the reason we could see only a partial quantity being transferred over here okay so we could see 1200 being converted to 600 and then 1100 being converted to 550 and thousand converted to 500. right so now this is I mean I hope you have understood the importance of the proportional percentage under the product group let's say if you would like to transfer the production plan but not the sales plan right so the production plan is what you have agreed with your uh software manager that you would like you have to manufacture so much of quantity in order to meet the Target stock level and also to meet the sales uh plan so that's the reason we should transfer the uh quantity from the production plan right so let's go back I'm going to exit this and go to the change mode of the planning now click on active version so now I'm going to transfer the production plan right so do the same way you just need to select this production plan and then click on transfer to demand management and here you should choose the second reader button that belongs to the production plan but not the sales plan right so you just need to choose this later button which in includes the proportional values of the product group members as well right so yeah that's it now click on transfer so it says that the requirement has been transferred so let's go into the display just to look at the values of the production plan and on the other screen let's take a look at the independent requirements active versions now you could see okay let me bring this here right so the production plan in the month of May it is 1100 so that's what we see here for the material API and then we have 1150 and then 1250 and 1350. and for the second uh member Pi CRM we have half of it right I mean since the proportional percentage is early 50 we are just going to plan 50 of the total quantity so it depends on I mean based on your requirement basically you can enter uh several members or the materials under this particular product group and execute the planning so enough the next step is basically to go into the md04 of these members but because the product group uh it is the task of this product group is basically to transfer the Demand right or to create a referred planning uh based on your historical data so now its job is done and the next one it goes into the individual parameters of these corresponding materials so let's go into md04 let me take this example API so we have you know based on our available stocks the independent requirements have been adjusted right and if I look at the other material Pi Dash CRM yeah so the data has been completely transferred of what we see in the demand plan okay 550 575 625 and 675 completely transferred so now what is the next step so the next step is basically to go with the MRP run and uh start creating your proposals and go with the production execution process so again to run the MRP there are a few methods that we typically follow one is to go with you know the transaction md01 or md01n where you are going to create a scope of planning and which runs at the entire plant and the second method let's say if you would like to execute the MRP only for this particular product group then what should be done so you simply have to go to the classic transaction md02 and here we are going to activate this checkbox for the product group so what is the product group here this PRD underscore grp underscore API so I'm going to provide this material here and then check this box even though if you miss out to check this box it automatically gets activated when you click on enter you see this it says that this particular material is a product group okay so now hit on enter again proceed with your MRP and let's look at the materials that have been included under this so we do have our main semifinalist uh that is pi Dash CRM API and tfv100 and also we do have compound a and compound B which are basically uh the sub levels under these finished products right so let's go back to md04 not the product group but because it does not create anything right so there will be no stock requirement list for this and that's what the error basically says so let's take a look at uh API and here in the md04 of API we can basically see these planned orders being created as part of the MRP run and similarly uh the other material 100 so we also have these planned orders created and then it goes into the production process basically so that is of the sales and operation planning works and the procedure on how to transfer the uh snop planning into the demand management [Music]