SAP Business ByDesign MTO batch production

Here’s a quick walk through and introduction to SAP BYD’s batch production process.

We will be creating:

  • Creating material master data with relevant planning, logistics, availability confirmation views
  • Bill of Materials
  • Bill of Operations
  • Production Model

After master data creation we will release the production proposals and orders and report production.

When we will check documents and postings generated in accounting by production activities.


  1. Creating the material master for batch produced product

If the product is marked as batch managed, Batch Dependent column is available in the product details. If you have maintained a conversion between a pair of units of measurement, you can use it for batch specific quantity conversions. For all products marked as Batch Managed, you can maintain conversion factors while creating or changing an identified stock.

In product master, quantity conversions can be changed. But, batch dependent quantity conversions cannot be deleted at the product level, if conversions are maintained at identified stock level.

● If Batch Dependent flag is set for conversions in product master after identified stocks are already created, then you have to enter quantity conversion at identified stock level whenever those identified stocks are used after the flag is turned on.

Logistics view:

Planning view:

Demand-driven planning

This procedure considers all types of demand (both independent and dependent) and creates receipts for uncovered demand. You should use demand-driven planning if demand is volatile, lead times are long, or the product is expensive and you therefore want to avoid keeping it in stock in high quantities. Demand-driven planning is also applicable if the lead time of the product is shorter than the expected delivery time of the customer. If this is not the case, you can still use demand-driven planning, but you need to forecast the demand at either finished product level or assembly level.

● Consumption-based planning

This procedure only considers the following elements as demand:

○ Negative available stock – sales orders, project requirements etc

○ Safety stock

○ Reorder point quantity

Production or purchase proposals are created if the available stock is below a threshold value such as a reorder point quantity. This means that you are required to specify a reorder point quantity when you select consumption-based planning.

The advantage of using the consumption-based planning procedure is simplicity. It is useful in a make-to stock environment if demand is relatively constant, lead times are short, or the product and storage is so inexpensive that a generous quantity can be placed in stock. For example, inexpensive input products that are only ordered a few times per year.

● Manual planning

With manual planning, receipts (production, purchase and stock transfer proposals) can only be created by you. This approach is useful for products that require your close attention. Products that fall into this category are products that are no longer to be procured, are expensive, are new, or require your interaction before they can be released to execution, for example, in an engineering-to-order environment.

If consumption-based planning has been selected as your planning procedure, planning proposals are created if the available stock is below a threshold value such as a reorder point or safety stock. The following figure demonstrates the impact of the fixed lot size with a reorder point quantity:

Availability Confirmation

Sales view

Valuation view

Taxes View

BOM and BOO Creation

Work Center: Planning and Production Master Data

BOM Creation:

Important is to include atleast one Make operation type.

Production Model:

Production model is made up from Bill of Material and Bill of Operations.

Product overview:

Now we can check our newly created product in product overview.

When product overview is open, run the planning.

After planning run:

We got 5×10 production proposals due to our min lot size of 10. Total demand was 50.

Release the production orders and tasks will be created automatically.

In the task overview work center you will see the tasks waiting for confirmation.

Confirm the tasks.

We will see today’s postings in confirmation journal. This includes also the consumption in the production.

Also General Ledger postings are created.

This is a very broad overview of the batch manufacturing possibility inside SAP BYD.

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