The planned order shows a planned receipt for a particular material in a plant. Basically, it specifies when the receipt is to take place and the quantity of goods that is to be received.
Planned orders are generally created automatically during the planning run. Here, the system determines the materials to be procured automatically and it also calculates the requirement quantities and dates.
Planned Order in SAP
Planned orders can also be created manually by the MRP controller. In this case, the MRP controller determines which material is to be procured, how much is to be procured when it is to be procured and whether externally or internally.
Planned orders are converted into production orders in the case of in-house production and they are converted into purchase requisitions in the case of external procurement.
The planned order has the following features:
It is an internal document which is not used outside the company and it is not binding in any way. It is purely a purchase order proposal from MRP which is used for covering demand and which can be changed at any time.
It serves the purpose of an order proposal for external as well as for internal procurement. The procurement source is determined either during the creation of the planned order or when processing the planned order.
It can generate dependent requirements and can be used in the capacity calculation.
A planned order consists of a header and one or more items.
Also See: How to do Availability Check against Product Allocation in SAP?
Recommended Reading For You
- What is Reorder Point Planning in SAP MM?In the reorder point planning procedure, the system compares available warehouse stock with the reorder level. If available stock falls below the reorder level, an order proposal is […]
- What is Consumption based Planning in SAP MM?The below sap mm tutorials (Material Management) will help to know more on the consumption based planning in sap mm. The central role of material requirements planning is to monitor stocks […]
- What is Materials Planning and Control?Materials planning and control determines how much of which material, component, goods etc. is needed and when. This activity is the responsibility of the materials planner or […]
- What is Purchase order in SAP?This post provides general information about purchase order and how they are processed with Material Management (MM) Purchasing. The purchase order defines a formal request or instruction […]
- What Is a Blanket Purchase Order?Blanket Purchase Order in SAP MM for Consumable MaterialsBlanket Purchase Order (Po's) are often appropriate for low value materials and are used to procure consumable materials and […]