SAP MM PP Integration | SAP PP MM Integration Video Lecture - Management

today we are going to start our next
topic as a TM m and P P integration so
in the previous video you have seen that
how s PM m is integrated with fi and
there was a big topic but all these
topics that I'm going to start here
they're very small topic and here we see
that how the si pmm is integrated with
si PPP which is production planning
module so first of all I have created
some points here so first of all
creation of purchase requisition for
external externally procured materials
during M appearin init in PB as during
the amarka topic I explained that MRP is
a common topic between PP and mm it's a
bit different in in from P 3 point of
view is different from mm point of view
but when you run MRP from PP module
perspective system will be creating the
purchases equation for the external
picture materials ok that means from BP
point of view we need to create a
production order
ok so production order we going to
create a finished product and to make
the finish product like we're going to
create a laptop ok come this is making a
laptop to make the laptop we need
different components like motherboard
keyboard or screen and things of that so
system will be so any of the product
like say maybe the motherboard is
external perfused so system will be
generating a purchase requisition for
the external procurement of the
components of the production order so if
I explain it here in a better way so you
have say production order for laptop so
you need to manufacture 100 pieces of
laptop so as you know the top is made of
different components so I can say is
made of motherboard you can see screen I
can say keep
or and some of the components okay so
maybe some of the companies with the
company's manufacturing in-house and
some Dominus can be externally procured
so if system will check if there is more
enough stock available to make the
hundred laptops then system will be
doing uh creating a purchase equation so
for example there's only 50 pieces of
stock here however we need 100 pieces so
system this is externally pickled so
system will be same creating a perch is
the equation for this one and later on
the purchase that will be converted to
which is order okay so from PP
perspective the purchase equation will
be created for externally compute
materials point number two is creation
of purchase requisition for non stock
items during production order creation
same as 0.1 but here we are talking
about the materials that are non-stop
materials what your source for example
it can be a packing material it can be
some other materials that we maintaining
as non-stock Macias so those materials
will also be procured the inter
production order creation point number
three creation of purchases equation for
subcontracting for externally process
operation in production order so let me
explain this one so in the production
order what happens is from PV
perspective you have different
operations
okay so production order has we're going
to finish 10 100 laptops and these are
the raw materials will be consuming okay
and the process flow will be going
through different operations okay so
here I will say operation number one
okay which is may be on machine number
XYZ okay or this is called work center
work center in TP language work center
say one and then
operation number two will be on
workcenter or copy that say five for
example okay and then operation number
three can be subcontracting that means
we do not perform this operation in
houses in our company because we do not
have the resources we don't have the
machinery or for exercise the reason
with sending it to subcontracting
vendors okay we will discuss about
subcontracting vendors in the previous
topics so we're going to send it outside
just to perform operation number three
and then finally operation number four
will be performed in-house so just an
example click on a machine number ten so
if you look at here so this is this
operation should be done by
subcontracting okay so to do this one
system we'll be creating a purchase
requisition to perform this operation
and purchase the equation will be
converted to purchase order electron
okay so that is another integration
between P P and mmm okay so that's the
point here is creation of purchase
equation for subcontracting for
externally processed operation
interaction order then we have point
number four is code arrangement or PIR
usage for subcontracting items to choose
the right vendor and price now obviously
when we going to create a purchase
requisition or purchase order for this
operation system it will find the right
vendor and price for that vendor to
perform that operation okay so here
system we'll be looking at where when
the system will be creating a purchase
order system we'll be reading your quota
arrangement that we discussed earlier or
PIR record ok purchasing information
record that we create ok so if I look at
the purchase information record again
Emmy 11 where we created so here we'll
be maintaining it as number two
subcontracting okay we'll discuss
already this one before
so that is your point number four and
then you have point number five is
question of reservations for company's
operation order during production or the
creation situation
so we already discussed we already
covered the topic called reservation
before in SAT mm training earlier and
here we are discussing about the
integration of reservation that means
whenever if I go back here okay let me
choose a bomb component again so here if
I as I discussed earlier so you need
different components to create the
laptop ok so I can say we need the
motherboard we need RAM we need hardest
etc so whenever so when you create so
for example just say as of today we have
I'll just pick one component so I'll say
for hard disk we have 150 pieces of
stock as of now as soon as you create
the production order for 100 pieces of
laptop obviously obviously you need 100
pieces of Hardys to come to make hundred
pieces laptop so system will be
automatically creating a reservation of
100 pieces as soon as the production
order is created 400 pieces system will
be doing a reservation of 100 pieces out
of this talk so that it cannot be
consumed by other orders or other
requirements so that means out of this
100 pcs will be reserved ok so that is
the integration so is so reservation is
a part of SAT mmm so they're sent
occasion between SFP mm and TP for
number 6 various goods movement for
production order like goods issue of the
company which is called back flushing
that means that whenever a production
order is processed or completed system
will be consuming the goods so if you
look at the example here so as soon as
we start the manufacturing of the
hundred pieces of laptop here system
will be consuming the this stock here ok
so what this stock is this is a part of
goods issue so we're doing a goods issue
or in SA PPP language it's known as back
flushing so because of the back flushing
system will be using doing that goods
issue or thematic array that means as
soon as we confirm that the confirm the
production order that means hundred
pieces are done system will be
automatically back flushing all these
components accordingly to that the
quantity that we manufactured for the
finished products so all the components
will be back thrust or will be goods
issue
automatically behind the screen in the
background as soon as you confirm a
production order so don't worry if you
if you don't know about what is
pressuring order how to create it how to
process it because that's a part of se
PPP okay but you just need to have a
understanding that how they are
integrated that's all we need to learn
here and the last point is Goods
movement for goods tip of the brush in
order for finished products so that
means when once you confirm the
production order for 100 pieces of
laptop that means you consume this one
but on the other hand you system will be
doing the goods received one hundred
pieces so whatever that material is it
will be increased the stock will be
increased by hundred pieces okay for
this laptop so if you look at M be 52 MB
51 transaction
see the stock of the goods movement then
you can see that 100 pcs has been added
because of that production order as soon
as you confirm the production order so
confirming a production order will
perform two activities one the goods
issue of the components will happen
second that Goods received of the
finished product will happen so this
will be increased finished stock will be
increased and this will be consumed okay
so this is known as Goods received that
will happen automatically okay so that's
all about the integration and thank you
to watch this video I will catch you in
the next video