Demo in SAP - SAP ERP Tutorial

- [Matthew] Welcome back to SAP MRP Strategies. I'm your instructor, Matthew Hunt, and in our last video we saw some still shots of strategy 10, Net Requirements Planning, so now in this video I'm going to do a live SAP demo of strategy 10, and so I'm going to start with the material master settings and this involves Sales Org. Data 2 and MRP 3 views. And so the item category group is a norm in the Sales Org. Data 2 view, and in the MRP 3 view you want to use strategy group 10. You do not need to enter a consumption mode for this because sales orders do not consume independent requirements in strategy 10, so no consumption mode is needed. So, now I'm going to start with stage one, which is always our demand management stage, so I'm going to go to MD62, or if you haven't created any requirements in the past, MD61. I've already used this material in previous examples, so that's why if I go to the schedule lines you'll see my withdrawal quantities at 300, but I'm going to bump up the November requirements, bump them back up to 1000 units just so you can see the procurement before sales stage two. Okay, so let's go look at our MD04 stock requirements list for this part. Okay, and you'll see I just created an independent requirement for 1000 units. I'm going to now do stage two, which is I'm going to execute MRP, so it's going to do, it's going to do planning and it's going to create a purchase requisition to offset those new independent requirements that I entered. So, there's my new purchase requisition, created it for 200 units because I increased my independent requirements by 200 units. And there it is. So, I'm going to convert this purchase requisition into a purchase order. This strategy works with both in-house production as well as external procurement, so in this example I am using a purchase order and I'm procuring the material externally, but I could have just as easily created a planned order and converted it into a production order. And it would, it works exactly the same way. A production order and a purchase order for this process work exactly the same. So, I just converted that purchase requisition into a purchase order. Now I'm going to go into the MIGO transaction and do a goods receipt on it. So, I'm doing a 101 goods receipt on the purchase order I just created. And I'm posting goods receipt on that now. So, once this posts then I'll go back to the MD04 screen and you'll see it should have increased my available stock back up to 1000 units. So, this is stage two, procurement or production before the sales order. Keep in mind I have not created any sales orders yet. So, yep, there I am, I'm back up to 1000 units because I just created a goods receipt. My purchase requisition is gone, so now what I'm going to do is I'm going to go to stage three, which is creating a sales order, and I'm going to go to transaction VA01 to do that. It's going to default in with my order type and sales org information just because I've already ran this transaction today, and I'm going to enter my customer information. And the material I'm using, MIC-002, and I'm going to create an order for 200 units and go over, I know my plant code. Hit enter, and it should pull in all the data from the material master, as well as my customer master, and it did. So, I'm going to show you the procurement tab real quickly. The schedule line category defaults to a CP and the requirements type defaults to a KSL. These two values, it defaults to those values because of my MRP strategy's set to a 10, as well as the item category group being set to norm. So, now I'm going to save this sales order. And it created order 22065. Now I'm going to go back into MD04 and I'm going to show you what MD04 looks like, and it's going to take a, there it goes, so I've created this sales order on 12/11, and you'll notice that my sales order line does not have an available quantity. That's because in strategy 10 the sales order has no impact on the net requirements calculation, so if you remember in our previous strategy, strategy 40, if I, if my sales order exceeded my independent requirements it would drive additional production after the sales order. Not the case in this example in strategy 10, so my sales order is set, and now I'm going to post goods issue on this sales order and you'll see it'll consume it from stock, so my 1000 on hand is going to go down to 800. So, I'm now going in to transaction VLO1N, and I'm going to post this sales order for delivery and goods issue, so I'm going to fill in my pick quantity there, and I'm going to PGI it. And it's taking a little time here to post that goods issue. The system's running a little slow. There, it finished. So, now when I go into my MD04 screen what we should see is we should see my stock down to 800, and again, system's running a little slow with the refreshes today, so let me hit the update button. I'm just refreshing my screen here. I'm not actually doing any transactions, but there it goes, okay. So, now you see my order line is gone. My stock level is down to 800 units, and that ends the cycle, so this was strategy 10. I'm going to stop this video now, and when we pick up in our next video we're going to talk about the last make-to-stock strategy that I'll show you, and that's strategy 11. It's called Gross Requirements Planning, and similar to this particular strategy, strategy 10, strategy 11, it is designed to smooth your productions signals, so sales orders will not impact the requirements situation, so when you're ready to see strategy 11 I'll see you in that video.