Simplification of MRP Functionality is done for Material Master to optimise and utilise functionality

of S4/HANA for existing Material Master from On Premise 15/11 release onwards.

Functionality of MRP Storage location replaced by MRP areas with corresponding settings.
Therefore, the below mentioned fields will not be functionally supported in the classical
transaction MM01/MM02/MM03 from 15/11 OP release onwards.

The S/4HANA simplication is done on the following tabs in transaction MM01/02/03.

1. Lot Size data in MRP1 Tab : unit of measure group is considerd in only retail henceforth it
is not required to switch it on in the material master.
o Unit of Measure Group
2. Procurement in MRP2 : MRP considers quota arrangements always, henceforth it is not
required to switch it on in the material master.
o Quota arr. usage.
3. BOM explosion /dependent Requirement tab in MRP4
o Selection Method
4. Repetitive manufacturing /assamby /deployment strategy tab of MRP4
o Action conrole
o fair share rule
o push distribution
o deployment horizon.
5. Storage Location in MRP4
o SLoc MRP indicator
o spec.proc.type SLoc
o Reoder Point
o Replenishment qty.
6. Also the backend database fields for these "omitted functionality" remains existing in the
system.

MDG implications: Any field that was removed in S/4 is also not available in MDG Material
when deployed on S/4.

Simplification: MRP fields in Material Master in MM01/02/03

The SAP S/4HANA simplification is done on the following tabs in transaction MM01/02/03.

1. Lot Size data in MRP1 Tab:

o Unit of Measure Group (MARC-MEGRU)
2. Procurement in MRP2: MRP considers quota arrangements always, henceforth it is not
required to switch it on in the material master.
o Quota arr. usage. (MARC-USEQU)
3. BOM explosion /dependent Requirement tab in MRP4
o Selection Method (MARC-ALTSL)
4. Repetitive manufacturing /assembly /deployment strategy tab of MRP4
o Action control (MARC-MDACH)
o fair share rule (MARC-DPLFS)
o push distribution (MARC-DPLPU)
 o Deployment horizon. (MARC-DPLHO)
5. Storage Location in MRP4
o SLoc MRP indicator (MARD-DISKZ)
o spec.proc.type SLoc (MARD-LSOBS)
o Reoder Point (MARD-LMINB)
o Replenishment qty. (MARD-LBSTF)
6. Also the backend database fields for these "omitted functionality" remains existing in the
system.

Simplification: MRP fields in Article Master in MM41/42/43

The SAP S/4HANA simplification is done on the following tabs/views in transaction MM41/42/43.

1. Screen "Procurement" in views "MRP/Forecast Data: DC" and "MRP/Forecast Data:

Store", screen "General plant parameters" in views "Other Logistics Data: DC" and
"Other Logistics Data: Store"

o Quota arr. usage. (MARC-USEQU)

2. Screen "Repetitive manufacturing/assembly" in views "MRP/Forecast Data: DC",

"Logistics: DC 2" and "MRP/Forecast Data: Store"

o Action control (MARC-MDACH)

3. Screen "BOM explosion/dependent requirements" in views "MRP/Forecast Data: DC",

"Logistics: DC 2" and "MRP/Forecast Data: Store"

o Selection Method (MARC-ALTSL)

4. Screen "Storage location MRP" in views "MRP/Forecast Data: DC", "Logistics: DC 2" and
"MRP/Forecast Data: Store"

o SLoc MRP indicator (MARD-DISKZ)

o spec.proc.type SLoc (MARD-LSOBS)
o Reoder Point (MARD-LMINB)
o Replenishment qty. (MARD-LBSTF)

5. Also the backend database fields for these "omitted functionality" remains existing in the
system.

Scheduling Margin Key

In S/4HANA, the scheduling margin key (field MARC-FHORI) is mandatory if defined in t-code
OMSR. By default the scheduling margin key is not mandatory.

In ECC, the scheduling margin key (field MARC-FHORI) was mandatory if MRP Type was:

 Not reorder point planning

 Not time-phased planning

This was independent from the customizing in t-code OMSR.

Reasons:
  SAP strives to simplify material master maintenance in SAP S/4HANA. The scheduling
margin key is not required for MRP in S/4HANA. If the scheduling margin key is not
specified, then the floats before and after production will be zero as well as the opening
period. Zero opening period means you should run the conversion of planned orders into
production orders every day.

2.

This blog is to gain further clarity on the simplification list item ‘Simplified Sourcing’ in S/4HANA
1511 and 1610. Below is the extract from the simplification list of 1610.

Business Suite Logic SAP S/4HANA Logic Reason

MRP only selects Purchasing info records are a Simplification of the sourcing
purchasing info records source of supply in their own logic: It is not required to
if a source list entry right. MRP selects purchasing create a source list entry on
exists that references info records if the “relevant for top of the purchasing info
the automatic sourcing“ indicator record
supplier referenced in is set in the purchasing info
the info record record.

MRP uses source lists to Source lists are not Optionally, source lists can
determine vendors, considered in the S/4HANA be used to temporarily block
contracts, or delivery onpremise edition 1511 until a source of supply or MRP-
schedules SP01. In later releases enable it only for a limited
source lists can be used to period of time.
provide additional
information for sources of
supply. For example, the
source list may be used to
block a source of supply or
MRP-enable it only for a
limited period of time.
Alternatively quota
arrangements can be used as
a workaround.

MRP only considers MRP considers quota In the early days of MRP,
quota arrangements if arrangements always. It is not reading and considering
the material master required to switch it on in the quota arrangements was
attribute MARC-USEQU material master expensive. MARC-USEQU
is set was a performance measure,
with which you could switch
off quota arrangements in
MRP to improve
performance. MRP in HANA
does not suffer much from
considering quota
arrangements.
In S/4HANA, a new field for automatic sourcing in info record – purchasing organization data
view is introduced as shown below:

As you can read from the simplification list a slight confusion is raised with the sentence “In later
releases source lists can be used to provide additional information for sources of supply”.

So now what happens when all the 3 objects exists i.e. 1. Quota arrangement 2. Source list 3.
Auto Sourcing indicator in info record. Moreover if in the source list there exists 2 valid
scheduling agreements then which one will MRP choose?

In order to get this crystal clear we created following scenarios in S/4HANA 1610 system:

 For demo case: Material : MAT1 has 2 scheduling agreements 5500000005 (with vendor
VEND1) and 5500000006 (with vendor VEND2) and Info record 5300000001 (with say
vendor VEND3)

Info record Quota Source list in use Result

relevant arrangement
for in use
automatic
sourcing
flagged

No No No MRP chooses 5500000005.

 The default logic is applied as
mentioned in SAP Note
2268069 (i.e. ‘If sourcing
determines several valid
sources of supply for the
same material, plant,
quantity, and date, but
does not find any quota
arrangements, then it
prefers production
versions over delivery
schedules, delivery
schedules over purchasing
contracts, and purchasing
contracts over purchasing
info records’)

Yes No No MRP chooses 5500000005

(oldest scheduling
agreement)

Yes No Yes MRP chooses 5500000006

(Blocked 5500000005)

Yes No Yes (Blocked both SA) MRP Creates Purchase

Requisition with Vendor
determined from info record
marked relevant for
automatic sourcing

No No Yes (Blocked both SA) MRP Creates Purchase

Requisition with no source
i.e. Vendor is blank

Yes No Yes (Both SA made MRP MRP Creates Purchase

not relevant) Requisition with Vendor
from Info record

Yes Yes (Vendor Yes (Both SA made MRP Creates schedule lines for
VEND1 relevant) vendor VEND1 i.e.
assigned 100% 5500000005
quota)

Yes Yes (Vendor Yes (Both SA made MRP Creates schedule lines for
VEND2 relevant) vendor VEND2 i.e.
assigned 100% 5500000006
quota)

Yes Yes (Vendor Yes (Both agreement MRP creates PR with Vendor
VEND2 blocked) VEND2
assigned 100%
quota)

Yes Yes (made Yes (Both agreement MRP creates PR with vendor
quota to zero blocked) VEND3 for which the info
for both) record is marked as relevant
 for automatic sourcing

Yes Yes (made Yes (Both unblocked and MRP chooses 5500000005
quota to zero MRP relevant) (oldest scheduling
for both) agreement)

Additional test case: What if 2 info records for the same material are marked as auto sourcing
relevant? Which one will MRP choose?

For this we created 2 Info records with numbers say 5300000084 (with
VEND1) and 5300000086 (with VEND3). MRP chooses the vendor with the oldest info record
i.e. VEND1 for PR creation.

How to influence it? Ans: By using source list and temporary blocking Or untick the auto sourcing
indicator in the info record.

So in summary:

 If a quota arrangement exists for a material, it has the highest priority during source
determination.
 In S/4HANA 1610, Source lists can be used to temporarily block a source of supply or
MRP-enable it only for a limited period of time.

Refer Note 2268069 S4TWL – Simplified Sourcing for further information.

Note: In addition to above, BAdI PPH_MRP_SOURCING_BADI can be used to deactivate the

simplified sourcing and bring back the old logic to select the vendor based on the source list.

Let me know your comments and feedback and in case you would like me to add any other
particular scenario in the table above.