Cross-Plant Planning in SAP ERP or S/4HANA with the Add-On Cross-Plant Planning (CPP) – Part 2

⇨ An integral part of the SCM Consulting Solutions, the Cross-Plant Planning (CPP) function, is an add-on program to the SAP S/4HANA system and SAP ERP system.

⇨ With the add-on solution Cross-Plant Planning (CPP), users can use the available stock in their supply chain network to re-balance inventory in the best and flexible way.

⇨ Cross-plant planning should re-balance the inventory throughout the whole supply chain network.

An integral part of the SCM Consulting Solutions, the Cross-Plant Planning (CPP) function, is an add-on program to the SAP S/4HANA system and SAP ERP system. This SCM Consulting Solution can be used to automatically transfer slow-moving materials across plants. The automatic creation of stock transport orders is a function to be executed periodically (report) and can be used to transfer previously identified slow-moving items from one plant to another. This function can be used with transaction /SAPLOM/CPP and specifying the following for the materials:

• Materials released for stock transfer
• If materials are actual slow-moving items in accordance with the specification to be defined in the selection
• If corresponding temporary replenishment elements (planned orders and purchase requisitions) can be replaced by stock transport orders

CPP Planning Process Flow

The CPP planning process is illustrated in combination with the MRP run in the following. The SAP standard MRP run with transactions MD01, MD02, MD03 (classic MRP) and MD01N (MRP Live) runs regularly and creates receipt elements as requirement coverage elements. These can be purchase requisitions, planned orders, stock transfer requisitions, or reservations.

The CPP logic now checks whether there is available stock for the materials of these supply elements across the network, so that the supply element can be exchanged with available stock. As soon as CPP recognizes that stock is available, the receipt element is deleted or reduced, and a new supply element (stock transport requisition, stock transfer reservation, stock transport order) is created for the same amount.

In this way, receipt elements to be procured externally are replaced by internal stock transfers. Similarly, internal production requests are replaced by internal stock transfers, so there is no need to produce what still exists in another plant.

Cross-plant planning with the consulting solution CPP can be carried out with various options and functional scopes that are presented below:

CPP Planning Level

CPP can be performed at plant level or at MRP area level. Supply location can also be excluded on MRP area level.

CPP Scenarios

CPP offers two scenarios to check stock availability for stock transfer: the standard scenario and an alternative scenario. Both scenarios differ with regard to the calculation of the available stock:

• Standard Scenario

In the standard scenario, the unrestricted-use stock is read from table MARD (field LABST) and compared with the requirement quantity. If the available stock is sufficient, the material availability is then checked according to the system settings for ATP when the element is created, depending on the generated stock transfer element. If the check is positive, the transfer element is created.

• Alternative Scenario

The alternative stock calculation method is used to determine the available stock based on range of coverage logics. If the days’ supply is sufficient, the system tries to create the stock transfer element.

Different logics can be used for the alternative scenario:

• Consum: The unrestricted-use stock is reduced by the uncorrected consumptions in the analysis period in the past and then forms the stock available for transfer. The periods that are to be used as the basis for stocks and requirements can be entered in Customizing.
• Demand: Open customer requirements and expected receipts (elements can be defined in Customizing) are read from the current stock/requirements list, totaled, and subtracted from the available stock. The periods that are to be used as the basis for stocks and requirements can be entered in Customizing.
• Excinv: The excess inventory is calculated by subtracting the consumptions from Consum and the open customer requirements from demand from the unrestricted-use stock. The maintained periods are added or subtracted directly to the current date. For example, an analysis period of 6 months into the future as of June 15, 2022, results in December 15, 2022 as the end date.
• No_rest: An ATP check is carried out with the checking rule RP. The variables defined in the checking rule are the basis for determining the stock available for transfer.

CPP Planning Objects

In CPP, users can use transaction /SAPLOM/CPP on the Receiving Plant tab page to select the requirement coverage elements (planned orders, purchase requisitions, reservations, and stock transfer requisitions) that are to be taken into account for determining the requirements of the receiving plant or MRP area (see Image 1). Users can also select whether requirement coverage elements are to be aggregated to optimize the number of stock transport orders created. Note that in the case of an aggregation, it is not possible to assign the original documents to the stock transport order. For purchase requisitions, reservations, and stock transport requisitions, it is possible to select additional CPP elements. As a result, the stock transfers created by CPP are also taken into account.

Image 1: Select CPP Planning Objects

The following prerequisites must be met so that the specified receipt elements of CPP can be taken into account:

• Prerequisites for purchase requisitions or Stock Transport Orders
• must be rated
• is not fixed
• does not have a deletion indicator in the purchasing document
• Purchase requisition is not marked as closed
• Blocking indicator is not 1 (locked by requester)
• Processing status is not processed
• Item category is normal (0)
• Account assignment category is not maintained
• Creation indicator is R for real-time (manual)
• Creation indicator < material creation date
• Delivery date is in the selected time horizon
• Prerequisites for Planned Orders
• must be rated
• is not fixed
• Order quantity > 0
• Basic finish date >= system date
• Creation indicator < material creation date
• Basic start date is in the selected time horizon
• Basic finish date is in the selected time horizon
• Plan scenario is not maintained
• Prerequisites for Reservations
• must be rated
• Plant is not the same as the receiving plant
• Storage location is not the same as the receiving storage location
• Requirement quantity > 0
• Final issue indicator is not set
• Withdrawal quantity is zero
• Requirement date >= system date
• Creation indicator < material creation date
• Requirement date is in the selected time horizon
• MRP relevance is not 1 (1 = not relevant to MRP)
• Deleted indicator is not set

CPP supply relationships between plants or MRP Areas

In the Special Functions area, users select a plant relationship scheme that enables them to prioritize or exclude plants for the automated stock transport order. Users can define plant relationship schemas in Customizing. To do this, execute transaction /SAPLOM/CPP_CUST and navigate to Maintenance: Priority (see Image 2).

Image 2: CPP Customizing: Maintain Priority

Here, users can assign delivery priorities. In the example from Image 2, it is set that the receiving plant 1710 is to be supplied with priority 1 from plant 1010. If there is no more available stock there, plant 1710 can also be supplied with priority 2 from supplying plant MH01.

In the Maintenance: Delivery Times area, the delivery times between the plants are entered (see Image 3).

Image 3: CPP Customizing: Maintain Delivery Times

Supplying plant 1010 requires 15 days to deliver to plant 1710. Plant MH01, on the other hand, only needs 5 days to deliver to plant 1710.

CPP Special Functions

A number of special functions are available, which are presented below.

Stock transfer of partial quantities

By choosing Do not transfer partial quantities (Image 5), users should only create a stock transport order for requirements that can be completely fulfilled by a plant.

Slow-Moving Items

A slow mover date (date of the last movement) can be specified from which a check for stock transfer is to be triggered. Materials whose slow mover date lies further in the past than this date are potentially planned for a stock transfer. For all materials considered, the corresponding date of the last movement is transferred from the posting documents to the material master.

Consider Batches

The option Consider Batches as Added (Image 5) offers the possibility to perform the material transfer based on the batch number. The batch number can be entered in the selection area of the receiving plant. As a result, only the materials from this batch interval are taken into account for the selection for the stock transfer.

CPP Master Data

In order for the materials to be planned across plants, they must be conImaged in the SAP material master. Users can maintain this master data using transaction MM02 (Change Material Master) on the SCM CS 1 tab page (see Image 4).

Image 4: Material Master: SCM CS 1 Tab – Maintain CPP Master Data

The following settings should be made:

• Last Movement

The Last Val.: field is used to specify whether the materials are slow-moving items. In CPP, this date of the last movement can be used to ensure that, for example, B. Only slow-moving items are to be transferred.

• Released for Transfer

The Release for Stock Transfer field is used to specify whether the material in question is to be released for stock transfer. If it is not a slow-moving item, the material can still be transferred across plants.

• Strategic Material

The Strat. Material: defines whether the material in question is to be a strategic material. In this case, the material is not transferred, regardless of whether it is a slow-moving item or whether it is marked as released for stock transfer. If the field is maintained with “X”, the material cannot be transferred.

• Stock Transfer Type

The Stock transfer type field is used to specify which stock transfer type is to be created by cross-plant planning. CPP can create stock transport orders, stock transport requisitions, and stock transfer reservations.

CPP Planning

To start CPP planning, transaction /SAPLOM/CPP can be used.

Entries on the General tab page. Settings should be made first and then the selections on the Supplying Plant tab page and then on the Receiving Plant tab page (see Image 5).

Image 5: CPP: General Settings Tab

The respective options have already been explained in the CPP Scenarios section.

Image 6 shows the initial situation in our example. To do this, call transaction /SAPLOM/MD04.

Image 6: Current Stock/Requirements List for Material 9SP_MH_102 in Receiving Plant 1710

Users can now see the current stock/requirements situation for material 9SP_MH_102.

• The material 9SP_MH_102 has several demands for 20 pieces each.
• 3 Purchase Requisition within the opening horizon and several planned orders out of the opening horizon.
• Plant 1710 can be supplied by plants 1010 with priority 1 and MH01 with priority 2 (see Image Image2).
• Delivery times can be seen in Image 3.
• Material 9SP_MH_102 has a stock of 50 pieces in supplying plant 1010 (see Image 6) and 340 available pieces in supplying plant MH01 (see Image 7).

Image 7: Current Stock/Requirements List for Material 9SP_MH_102 in Supplying Plant 1010

Image 8: Current Stock/Requirements List for Material 9SP_MH_102 in Supplying Plant MH01

Now users can run CPP. The result of CPP planning can now be analyzed on the result screen. To do this, call transaction /SAPLOM/CPP and execute CPP planning.

In the Elements for Stock Transfer area, users can see that the three purchase requisitions and the seven planned orders of material 9SP_MH_102 have been selected from plant 1710 (see Image 9).

Image 9: CPP Result: Elements for Stock Transfer

CPP now tries to replace these purchase requisitions and planned orders with stock transfers from the supplying plants. The area Transferred Materials lists which stock transfer purchase requisitions have now been created by CPP (see Image 10).

Image 10: CPP Result: Transferred Materials

Users can also see the supplying and receiving plants and the quantities that will be transferred.

The details can be analyzed in the message log as shown in Image 11:

Image 11: Message log in CPP

This completes the cross-plant planning. The results can also be seen in the Current Stock & Requirement List.

Image 12 shows the results in plant 1710. The Stock transfer Requisition with Type CPPSTR are created, the purchase requisitions and the planned orders are deleted.

Image 12: Current Stock/Requirements List for Material 9SP_MH_102 in Receiving Plant 1710

Image 13 shows the available stock from plant 1010 that is completely used for stock transfer.

Image 13: Current Stock/Requirements List for Material 9SP_MH_102 in Supplying Plant 1010

Image 14 shows that the rest is coming from plant MH01.

Image 14: Current Stock/Requirements List for Material 9SP_MH_102 in Supplying Plant MH01

With the add-on solution Cross-Plant Planning (CPP), users can use the available stock in their supply chain network to re-balance inventory in the best and flexible way.

Keep in mind, that stock transfer for batches and for alternative materials can be considered as well. Even stock transfers in a make-to-order or engineer-to-order scenario can be considered.

(More information on CPP can be found on https://help.sap.com/docs/SCMCSCPP. For more information about the SCM Consulting Solutions Cross-Plant Planning (CPP), contact the author at marc.hoppe@sap.com)