MRP Views in Material Master SAP - SAP CO Tutorial

The MRP 1 view is the first of 4 MRP views on the material master. The MRP 1 VIEW is a place holder for defining the Planning methods and lot sizing procedures of a give material at a plant/storage location level. MRP stands for “material requirements planning”, which aims to guarantee material availability. MRP is necessary to procure or produce quantities of material for internal purposes or external sales.

The four MRP views contain many fields relevant to planning and production, but only a few are of importance to PRODUCT COSTING. The MRP 1 view consists of general data, MRP procedures, and lot size data (Figure 3.2).

Figure 3.2: Material Master MRP 1 view

MRP type

The MRP Type Key determines whether and how the material is planned. You have the following options:
PD – Relevant for Material Requirement Planning
ND – No Planning in SAP
VB – Manual reorder point planning (Consumption based planning)
VM- Automatic reorder point planning (Consumption based planning)
VV – Forecast based Planning
X0 – External Planning i.e., APO or BAAN or I2 or MES or any other external planning system.
MRP types can also be configured to the requirements, but most of the times, standard MRP types are used.

Plant-specific material status

Plant-specific material status is a field that affects whether a material is costed or an error or warning is issued during purchasing or production. The plant-specific material status restricts the usability of the material for the plant concerned, that is, it defines whether a warning or error message is displayed if you include the material in a particular function. Plant-specific material status differs from the cross-plant material status on the basic data 1 view because the status is maintained for each plant. This allows flexibility if a material becomes discontinued or obsolete in one plant, but not others.

Indicates whether, for a specific plant, the MATERIAL may be used in the following areas:

Materials management (for example, in purchasing and in inventory management)
Production planning and control
Plant maintenance
Warehouse management
Costing with a quantity structure

Typically, the plant-specific material status is set when a material is discontinued or obsolete. A discontinued material may need to be costed, but should no longer be purchased, because it will be replaced. An obsolete material will likely not need to be costed again since the inventory will be sold or scrapped. The valid from field can be used to specify when the plant-specific material status became valid.

The configuration for plant-specific material status can be accessed through transaction OMS4 or through the IMG menu pathCONTROLLING • PRODUCT COST CONTROLLING • PRODUCT COST PLANNING • MATERIAL COST ESTIMATE WITH QUANTITY STRUCTURE  • SETTINGS FOR QUANTITY STRUCTURE CONTROL • MATERIAL DATA • CHECK MATERIAL STATUS.

Assembly scrap percentage

Non-conforming material that cannot be reworked or used and has no value except for its material content.
The following are the various scraps that are maintained
1. Assembly Scrap
2. Component Scrap
3. Operation Scrap
Assembly scrap percentage

• Percentage scrap that occurs during production of the material if the material is an assembly.
• Takes into account all faults that occur when the individual components of an assembly are assembled (in production).
• Maintained in the MATERIAL MASTER – MRP 1 View as a percentage
• Assembly scrap is used in materials planning to calculate the lot size of the assembly. The system increases the quantity to be produced by the scrap quantity calculated.
• indicates the expected scrap from a material during production. This scrap rate is relevant to product costing because additional components are required to offset the amount of scrap.

The MRP 2 view consists of procurement and scheduling fields as well as details around net requirements calculation (see Figure 3.3).

Figure 3.3: Material master MRP 2 view

Procurement type

The procurement type field is a key integration point between logistics and product costing because the entry in this field determines how you will cost a material. When the system determines the procurement element, it first asks whether procurement should take place via in-house production or external procurement.
Procurement Types:
E: In-house production
F: External procurement
X: Both procurement types

If a material has procurement type E, produced in-house, SAP will look for a BOM and routing when costing this material. If no BOM or routing is found, the system will produce an error message.

If a material has procurement type F, external procurement, the system will look for a price using the configuration strategy in the valuation variant. There are a variety of options for selecting a price for a procured material. You could use the purchase information record, which is the master record containing the price from the vendor. You could also use a planned price field, tax or commercial price field, or a current or future price.

Finally, if a material has procurement type X, both procurement types, the system will first search for a BOM and routing. If the system cannot find a BOM or routing, it will continue to search for a price using the same strategy in the valuation variant used for procurement type F, externally procured, materials.

Note that the system does not produce a hard error if a BOM is found, but a routing is missing. There are situations where a material is produced purely with materials and no routing activities are required. The system will produce a warning message that can be ignored, or configured not to appear.

Special procurement type keys

The special procurement type is used to precisely define how in-house production and external procurement is to be carried out.You cannot configure additional procurement types, but you can use special procurement keys to alter how the system treats materials with different procurement types.

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