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SAP Long Term PLANNING

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Long term planning (Simulative MRP) is used to simulate the future demand and supply situation in all BOM levels. The main function is to check the capacity situation, material requirement and vendor ability to provide the material in desired time.
This is not an actual run but a simulative run where actual planning situation is not being affected, and we can see the capacity situation of the work centers well ahead in time. If such information is available in advance, then we can decide at an early date whether additional machines will be required to cope with capacity bottlenecks.

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SAP Long Term PLANNING

  1. 1. Long Term Planning Business Consulting Ankit Sharma Long term planning (Simulative MRP) is used to simulate the future demand and supply situation in all BOM levels. The main function is to check the capacity situation, material requirement and vendor ability to provide the material in desired time. This is not an actual run but a simulative run where actual planning situation is not being affected, and we can see the capacity situation of the work centers well ahead in time. If such information is available in advance, then we can decide at an early date whether additional machines will be required to cope with capacity bottlenecks.  LTP (Long Term Planning) is nothing but MRP run in simulation version to simulate the production plan for the future.  It is possible to transfer the plan from simulative version to operative version "00"(actual planning) if through simulation it is found that all capacity and requirement can be fulfilled.  The purchasing department can also utilize the outcome of long-term planning. They use the information on the future requirement quantities to estimate future purchase orders. This provides them with an opportunity to negotiate delivery schedules and contracts with vendors.  Vendors also have an advantage from long-term planning results as they are sent a preview of future estimated purchase orders and delivery schedules.  Generally, Planned Independent Requirement (PIR) version can be either active or inactive. For LTP planned independent version should be inactive as it is a simulative version. Only active PIR version is being taken for operative planning (MRP).  Existing master data can be used for LTP. But to have a different master data (BOM and Routing) for LTP is also possible.  If you want to delete the Long term planning data, then you need to delete the planning scenario and you can re-run whole cycle again with new requirement again in another inactive version.  Long term planning data can also be utilized to transfer routing activity quantities to the respective cost centers. Controlling department can calculate activity price calculation by dividing the cost center budget value and activity quantity (calculated by LTP run) which is used for standard cost calculation.
  2. 2. Long Term Planning Business Consulting Ankit Sharma 1. Create the planning scenario by the transaction MS31.
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  8. 8. Long Term Planning Business Consulting Ankit Sharma This will create the Planning file entries for the Planning scenario.
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  10. 10. Long Term Planning Business Consulting Ankit Sharma The same could be view through MS21 for display of the Simulation Planning file entries. Compare with MD21. Now create the Forecast planning for 03 years. Than 01 Years tentative planning and 03 month firmed planning.
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  13. 13. Long Term Planning Business Consulting Ankit Sharma Now copy the requirement to 01 years tentative planning say years 2017 Make sure following things mentioned below: 1. Right demand version is selected in the right sequence 2. Never select target as Active. 3. Run first time in simulative mode to check the demand is being transfer or not.
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  15. 15. Long Term Planning Business Consulting Ankit Sharma Now Remove the simulation mode and re-run the transaction MS64.
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  17. 17. Long Term Planning Business Consulting Ankit Sharma Now check in MD63
  18. 18. Long Term Planning Business Consulting Ankit Sharma Now copying the 03 Month firmed planning from 01 years tentative planning.
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  21. 21. Long Term Planning Business Consulting Ankit Sharma Now check in MD63 Now check the same in MS04 and MD04.
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  23. 23. Long Term Planning Business Consulting Ankit Sharma Now run the MRP for the LTP scenario 007. You can use MS01 for plant level and MS02 for Single material Multi-level or Product Group wise.
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  26. 26. Long Term Planning Business Consulting Ankit Sharma Planned could be viewed through the Table PLAF. For the Active MRP check through MD04.
  27. 27. Long Term Planning Business Consulting Ankit Sharma Additional Information: Transaction - MCB& For any query please mail: businessconsulting007@gmail.com YouTube Channel: https://www.youtube.com/channel/UCJWpmkuzZv-VDUyBGhR8yOw

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