Written by Tsujita — Paddy & Water Inc. / Supply Chain

From Basic Configuration (SPRO) to the Integrated SD/MM/PP Flow

Chapter 1　What Is Production-Number (Make-to-Order) Management

1-1　The Concept of Production-Number Management

Production-number management (Individual Requirements Management) is a method of managing the requirements, inventory, and procurement of a material individually, tied to each sales order. In conventional make-to-stock production, a pooled-inventory model is assumed, but under production-number management the system tracks, at the material level, “which inventory or procurement was secured for which sales order.”

In SAP PS, production-number management is realized by treating a WBS element as the “production number” and exploding the requirements tied to it via MD51 (Project MRP).

1-2　Cases Where Production-Number Management Is Required

Industry / Situation	Why Production-Number Management Is Needed	Implementation in SAP
Make-to-order / Engineer-to-order (MTO/ETO)	Specifications differ by order, so mixing with general-purpose stock is not possible	Individual procurement with the WBS element as the account assignment object
Individual costing of high-value equipment	Need to accurately track cost on a per-project basis	Cost collection by WBS element (CO-PC)
Project quality traceability	Need to record which lot of parts was used	Lot management via Q-stock (project stock)
Advance securing of long-lead-time materials	Need to secure long-lead-time items early for a specific order	Reservation management via individual requirements

[Difference from Regular MRP] Regular MRP (MD01N) aggregates and plans demand across the entire plant (collective requirements). Production-number MRP (MD51) explodes requirements individually by WBS element, and procurement/manufacturing are also carried out tied to the WBS element (individual requirements).

1-3　Three Implementation Approaches

Approach	Overview	Use Case
Production-number MRP via PS (subject of this document)	MRP explosion via MD51 keyed on the WBS element	Large-scale projects / manufacturing spanning multiple processes
Sales Order Inventory (SOI)	The sales order document number is used as the stock key	Orders directly linked to SD with few process steps
Batch management	Orders are tracked by batch number	Industries requiring quality traceability, such as pharmaceuticals and food

Chapter 2　Overall SPRO Configuration Map

To make production-number MRP function correctly, configuration spanning five modules — PS, PP, MM, SD, and CO/FI — is required. If even one setting is missing, MRP explosion, Q-stock management, or cost collection will fail to work correctly.

This chapter provides an overview of all configuration items, and Chapters 3 through 7 explain the settings for each module in detail.

Module	Main Configuration Categories	Representative T-Codes / IMG Paths	Detailed Chapter
PS	Project profile / WBS element profile / network / budget / settlement	OPS1/OPSA/OPBK/OKO7	Chapter 3
PP	MRP controller / special procurement type / order type / scheduling	OMD0/CPU3/OPL8/OPPQ	Chapter 4
MM	Account assignment category / movement type / automatic account determination / valuation class	OME9/OMJJ/OBYC	Chapter 5
SD	Item category / schedule line category / account assignment / billing plan	VOV7/VOV6/VKOA	Chapter 6
CO/FI	Controlling area activation / settlement profile / revenue recognition / budget availability	OKKP/OKO7/OKG1	Chapter 7

2-1　Configuration Dependencies

Configuring settings in the following order prevents errors caused by dependencies.

Order	Configuration	Reason
①	PS: Project profile (OPS1)	Prerequisite settings for the WBS element and network
②	PS: WBS element profile (OPSA)	MRP-relevant flag / billing element flag
③	PP: Definition of special procurement type	Referenced by the special procurement key on the material master
④	MM: Configuration of account assignment category “Q” (OME9)	Prerequisite used by purchase orders and production orders
⑤	PP: MRP controller (OMD0)	Referenced in the material master MRP view
⑥	PP: Order type / plant assignment (OPL8)	Prerequisite for creating production orders
⑦	SD: Item category configuration	Required before issuing sales orders
⑧	CO: Settlement profile (OKO7)	Referenced by WBS element settlement (CJ88)
⑨	FI: Automatic account determination (OBYC, etc.)	Required for generating postings during goods movements and invoice processing

Chapter 3　PS Module Configuration (SPRO)

3-1　Project Profile (OPS1)

The project profile is a template specified when creating the project definition (CJ01), and it defines default values for accounting, planning, scheduling, and status management.

OPS1 Configuring the Project Profile

(IMG path) Project System > Structures > Operative Structures > Define Project Profile

Configuration Field	Recommended Setting for Production-Number MRP	Description
Project profile ID	Any (e.g., Z_MTO01)	It is recommended to create a separate profile dedicated to production-number MRP
Object class	Standard (NORM)	Select Investment (INV) when integrating with Assets under Construction (AuC)
Profit center	Configure profit-center inheritance for the WBS element	The starting point for PS → CO-PA integration
Commitment management	Active	Required to post confirmed order amounts to the balance sheet
Budget management	Active	Prerequisite for the budget availability check (OPBK)
Use CTP	Generally inactive	CTO is handled via Variant Configuration

[Profile separation] It is recommended that projects for production-number MRP and investment projects (subject to AuC) use separate profiles. Mixing these settings will cause errors during settlement processing.

3-2　WBS Element Profile (OPSA)

The WBS element profile defines the attributes of the WBS element (whether it is MRP-relevant, a billing element, an account assignment element, etc.). Under production-number MRP, if this setting is incorrect the WBS element will not become a target of MD51 explosion.

OPSA Configuring the WBS Element Profile

(IMG path) Project System > Structures > Work Breakdown Structure (WBS) > Define WBS Element Profile

Flag	Setting for Production-Number MRP	Consequence if Not Set
MRP relevant (Acct Assgnmt)	ON (mandatory)	The element will not be a target of MD51 explosion. No planned orders will be generated.
Account assignment element	ON (mandatory)	Cannot be used as the account assignment object for purchase orders or production orders
Billing element	ON only for WBS elements requiring revenue recognition	A WBS element left OFF cannot be used as the account assignment object for an SD sales order
Planning element	ON only for WBS elements requiring planned cost entry	Even if OFF the system still works, but cost planning (CJ40) becomes unavailable
Budget management (Bgt)	ON if using the budget availability check	If OFF, purchase orders will not be blocked even when the budget is exceeded

☞ A WBS element whose MRP-relevant flag is OFF is excluded from MD51 processing. When non-MRP WBS elements and production-number-MRP WBS elements coexist within a project, they must be explicitly distinguished via the profile.

3-3　Network Profile (OPS2)

When using network activities under production-number MRP (i.e., when process control or capacity planning is required), the network profile must be configured.

OPS2 Configuring the Network Profile

(IMG path) Project System > Networks > Define Network Profile

Configuration Field	Recommended Setting	Description
Order type (network)	e.g., NW01	The order type assigned in PP via OPL8
MRP group	Any (e.g., PSGRP)	Capacity requirements group
Cost management (cost element group)	Configuration required	Cost collection classification by cost element
Scheduling type	Forward scheduling	Used when calculating the delivery date from the order date

3-4　Budget Profile (OPBK)

Configured when using the budget availability check (i.e., when you want to block budget overruns at the time a purchase order or production order is issued).

OPBK Defining the Budget Profile

(IMG path) Project System > Costs > Budget > Define Budget Profile

Configuration Field	Description
Availability control	Select “A: Hard (error)” or “B: Soft (warning).” A hard block is generally recommended for production-number management.
Object of the check	Select at which stage the check occurs — purchase requisition / purchase order / production order
Tolerance (%)	Set numerically how much of the budget may be exceeded (e.g., 105% = up to 5% overrun allowed)
Tolerance amount	An absolute-amount tolerance ceiling can also be configured

[Note] Configuring OPBK alone is not sufficient. It also requires that the “Budget Management Active” flag be set in the project profile (OPS1), and that a budget (CJ30) be posted to the WBS element.

3-5　Settlement Profile (PS-Specific Settings)

For WBS element settlement (CJ88), the “settlement profile” and “settlement rule” define which G/L account, cost center, and profit center the work-in-process balance is transferred to.

OKO7 Configuring the Settlement Profile

(IMG path) Controlling > Internal Orders > Actual Postings > Settlement > Maintain Settlement Profiles

Configuration Field	Recommended Value for Production-Number MRP	Description
Settlement type	PER (periodic) or FUL (full balance)	FUL is more common for production-number management (full transfer upon order completion)
Settlement receiver type	G/L account (FI), profit center (CO-PCA)	The final posting destination for the WBS balance
Source of the settlement rule	(automatically set on the WBS element) or manual	Automatic setting is recommended (manual carries a risk of omission)
Validity period	Set to the project’s validity period	Blocks postings outside the period

3-6　WBS Element Number Ranges

CJ82 Number Range Configuration for the Project Definition

(IMG path) Project System > Structures > Project Definition > Number Ranges

Configures the numbering rule for the project ID — whether external number assignment (matching the sales order number) or internal number assignment is used. Under production-number management it is common practice to align the project ID with the sales order number.

Chapter 4　PP Module Configuration (for Production-Number MRP)

4-1　Configuring the MRP Controller (OMD0)

The MRP controller (planner code) is an identifier assigned to each material in the material master MRP view to designate the responsible person. It is used to filter MD51 runs and to route exception messages.

OMD0 Configuring the MRP Controller (Planner)

(IMG path) Production Planning > Material Requirements Planning > Master Data > Define MRP Controllers

Field	Example Setting	Description
Planner code	PS01	It is recommended to create a code dedicated to production-number MRP
Planner name	PS Project Procurement Owner	Name of the responsible person or team
Phone / email	Optional	Contact information for exception handling (for reference)

[Operational tip] Separating the MRP controller between production-number MRP items (for projects) and mass-production items (regular MRP items) allows an MD51 run to be filtered down to “items owned by PS only.” Separation is also recommended to avoid mixing with MD01N (mass-production MRP).

4-2　Configuring Special Procurement Types

The special procurement type is a parameter that specifies, per material/plant combination, the “procurement method” (external procurement, in-house production, project stock, etc.) used during an MRP run. Under production-number MRP, a special procurement type tied to “project stock (Q-stock)” must always be configured.

(IMG path) Production Planning > Material Requirements Planning > Master Data > Define Special Procurement Type

Special Procurement Key (Example)	Procurement Type	Meaning	Use Case
40	External procurement (Q-stock)	Generates a purchase order with the WBS element as the account assignment object	Purchasing externally and receiving into project stock
70	In-house production (production order with Q-stock)	Generates a production order tied to the WBS element	Manufacturing in-house and receiving into project stock
71	External procurement (direct to project)	A purchase that posts cost directly to the WBS element	Costs that do not become inventory, such as services and subcontracting fees
50	Stock transfer (between plants)	Transfer from Q-stock at another plant	Transferring project stock in a multi-plant configuration

☞ Special procurement keys must be defined per plant. In multi-plant environments, missing configuration for some plants is a common issue. Because it is easy to forget when a new plant is added, be sure to include this in the configuration checklist whenever the system landscape changes.

4-3　Scheduling Parameters (CPU3)

Configures the parameters used for scheduling calculations (forward/backward scheduling) of production orders generated by production-number MRP.

CPU3 Configuring Scheduling Parameters

(IMG path) Production Planning > Shop Floor Control > Operations > Scheduling > Set Up Scheduling Parameters

Parameter	Description	Recommendation for Production-Number MRP
Scheduling type	Forward / Backward	Backward (calculated back from the delivery date) is common
Float before production start	Buffer days before manufacturing starts	1–3 days (material preparation period)
Float after production finish	Buffer days between completion and shipment	1–3 days (inspection / packing period)
Calendar	Factory calendar ID (SCAL)	Ensures only working days are used in the calculation

4-4　Production Scheduling Profile (OPKP)

The production scheduling profile defines the default parameters used during an MRP run. Creating a profile dedicated to production-number MRP prevents it from being mixed with the MRP parameters of regular mass-produced items.

OPKP Configuring the Production Scheduling Profile

Parameter	Setting for Production-Number MRP	Description
Processing key	NETCH (regenerative planning) or NETCD (net change in the planning horizon)	For production-number MRP, NETCD (changes only) is more processing-efficient
Creation of purchase requisitions	Immediately convert to a purchase order	A setting that generates a purchase requisition immediately after MD51
Creation of schedule lines	Immediately	Immediately fixes the schedule for the order and manufacturing
MRP planner	Planner code for PS (configured in OMD0)	Processes only items owned by PS

4-5　Order Type and Plant Assignment (OPL8)

Assigns, per plant, the order type applied to production orders generated by production-number MRP. Creating an order type dedicated to production-number management allows it to be distinguished from regular mass-production orders.

OPL8 Configuring the Order Type / Plant Assignment

(IMG path) Production Planning > Shop Floor Control > Master Data > Order > Define Order Type-Dependent Parameters / Assign Order Types to Plants

Order Type (Example)	Content	Use Case
PP01 (standard)	Standard mass-production order	Mass-production MTS / MTO (regular)
PP02 (for projects)	Production order tied to a WBS element	Order generated by production-number MRP explosion
PP03 (rework)	For reworking defective items	Order type dedicated to rework

[Independence of the order type] Creating a separate order type for production-number MRP allows the CO settlement rule, status management, and cost collection categories to be separated from mass-produced items. The settlement rule used to accumulate project costs onto the WBS element is also configured tied to the order type.

4-6　Production Scheduling Profile (OPPQ)

Defines the default processing (automatic release, automatic printing, etc.) of production orders (after CO01/MD51 explosion).

OPPQ Configuring the Production Scheduling Profile

Parameter	Recommendation for Production-Number MRP	Description
Automatic release	Generally OFF	Project orders are recommended to be released only after manual review
Stock check (availability check)	ON	Release only after confirming material availability
Capacity check	ON (when using capacity planning)	Checks work centers for overload
Automatic goods issue (MIGO)	OFF	Issue timing is managed via manual MIGO

Chapter 5　MM Module Configuration (Project Stock and Procurement)

5-1　Configuring the Account Assignment Category (OME9)

The account assignment category is the key that defines “which object costs are assigned to” at the time of an MM purchase order or goods receipt. Under production-number MRP, two categories are mainly used: “Q (project stock)” and “P (project direct cost).”

OME9 Configuring the Account Assignment Category

(IMG path) Materials Management > Purchasing > Account Assignment > Maintain Account Assignment Categories

Category	Meaning	Posting to Inventory	Use Case
Q (project stock)	Stock procurement tied to a WBS element	Posted to inventory as Q-stock	Procurement of parts/materials (after goods receipt)
P (project direct)	Direct cost against the WBS element	Not posted to inventory; posted directly as an expense	Costs that do not become inventory, such as services, subcontracting, and consumables
K (cost center)	Cost posting to a cost center	No inventory posting	Indirect materials, office supplies (regular MM)
A (fixed asset)	Posting to a fixed asset	No inventory posting	Capital expenditure (investment projects)

Required fields when configuring the Q category in OME9:

• Account assignment changeable: ON (allows the WBS element to be specified per PO line item)

• WBS element field: set to required entry

• Goods-receipt/inventory management target: activate Q-stock (project stock)

☞ Confusing the use of category Q and category P can result either in expenses that should not become inventory remaining on the books as inventory (balance sheet inflation), or in parts that should be inventory-managed being posted directly as expenses, causing inventory discrepancies. Clarify, based on business requirements, which category to use for each procured item before configuring.

5-2　Checking Movement Types (OMJJ)

The movement types used for Q-stock (project stock) are provided as standard, but if a custom movement type is required it is added via OMJJ.

OMJJ Configuring Movement Types

Movement Type	Content	Use Case
101Q	Q-stock goods receipt (from a purchase order)	Goods receipt of a purchase order (account assignment Q) → posted to Q-stock
261Q	Q-stock issue (to a production order)	Material issue to a production order (from Q-stock to the production order)
281Q	Q-stock issue (to a network activity)	Material issue to a network activity
411Q	Conversion from Q-stock to unrestricted stock	Returning stock upon project cancellation
412Q	Conversion from unrestricted stock to Q-stock	Assigning existing stock to a project
541	Issue of components to a subcontractor	Providing materials for a subcontracting process (PP-302)
101 (subcontracting return)	Receipt of processed goods from a subcontractor	Goods receipt after subcontracting is complete

[Standard movement types] The movement types for Q-stock are provided by standard SAP, and customization is normally unnecessary. However, it is necessary to confirm that the G/L account assignment for the automatic account determination (OBYC) tied to each movement type is correct.

5-3　Configuring Automatic Account Determination (OBYC)

The postings that are automatically transferred to FI during a goods movement are configured in OBYC (automatic account determination for inventory management). The following posting keys are especially important for production-number MRP.

OBYC Configuring Automatic Account Determination (Inventory Management)

Transaction/Event Key	Content	Timing of Occurrence in Production-Number MRP
BSX	Inventory posting account	At goods receipt via 101Q (Dr: project stock / Cr: GR/IR clearing)
WRX	GR/IR clearing account	The offsetting entry at goods receipt (GR/IR clearing)
GBB/VBR	Goods issue from the plant (consumption)	At the 261Q issue (Dr: work-in-process expense / Cr: project stock)
PRD	Purchase price variance	Variance between the standard cost and the actual receipt price

Configuring a valuation class dedicated to project stock (Q-stock) in the accounting view of the material master allows the G/L account assignment to be managed separately from regular inventory.

OMSK Configuring the Valuation Class

(IMG path) Materials Management > Valuation and Account Assignment > Account Determination > Define Valuation Classes

5-4　Material Master Configuration (Production-Number MRP Items)

Items subject to production-number MRP require accurate configuration across the various views of the material master.

View	Field	Setting for Production-Number MRP	Note
MRP1	MRP type	PD (MRP)	M0 (manual MRP) cannot be used with production-number management
MRP1	MRP controller	Planner code dedicated to PS (configured in OMD0)	Do not mix with mass-produced items
MRP1	Lot-sizing procedure	EX (lot-for-lot order quantity)	Production-number management is normally managed to an exact lot
MRP2	Individual/collective requirements indicator	1 (individual requirements)	Setting 2 (collective) does not result in production-number management (the most critical setting)
MRP2	Special procurement key	The key for Q-stock (e.g., 40 or 71)	A plant-dependent setting (as configured in Section 4-2)
MRP2	Safety stock	0 (generally zero for production-number management)	Prevents mixing between Q-stock and regular stock
MRP3	Strategy group	Normally blank for production-number MRP items	The strategy group is used for planning under MTS
Accounting 1	Valuation class	The valuation class for project stock	Linked with OMSK/OBYC

☞ Unless the individual/collective requirements indicator is set to “1 (individual),” requirements separated by WBS element are not generated, and stock ends up mixed across projects. This is the most common configuration mistake when introducing production-number MRP.

5-5　Configuring Tolerances (OMR6)

Configures the amount/quantity variance tolerances for purchase orders and invoice verification (MIRO). Since unit-price fluctuations tend to be large in project procurement, tolerance design is important.

OMR6 Configuring Tolerances

Tolerance Type	Example Setting for Production-Number MRP	Description
Price variance (absolute)	±¥10,000	For items with a fixed unit price
Price variance (%)	±5%	For project items whose material unit price tends to fluctuate
Quantity variance	±2%	Allows for a margin of error in the receipt quantity

Chapter 6　SD Module Configuration (Sales Order → WBS Integration)

6-1　Sales Order Type Configuration

Unlike a regular stock-sales order type (TAN), the sales order type used for production-number MRP requires a configuration that allows a WBS element to be specified as the account assignment object.

(IMG path) Sales and Distribution > Sales > Sales Documents > Sales Document Header > Define Sales Document Types

Configuration Field	Recommended Setting	Description
Sales order type	ZPS (custom) or TA	Creating an order type dedicated to production-number MRP is recommended
Account assignment category (header)	E (sales order stock) or Q (PS)	Determines the WBS account assignment setting
Billing plan type	Milestone billing or periodic billing	Milestone billing is recommended for project-completion type orders
MRP relevance	D (schedule line linked to MRP)	Links the SD requirement to PP/PS

6-2　Item Category Configuration (VOV7)

The item category on the sales order line item is one of the most critical settings, as it determines the classification “stock sale / make-to-order / project item.”

VOV7 Configuring the Item Category

(IMG path) Sales and Distribution > Sales > Sales Documents > Sales Document Item > Define Item Categories

Item Category	Meaning	Relationship to Production-Number MRP
TAN	Standard item (stock sale)	ATP check → shipped from stock. Production-number MRP is not required.
TAK	Make-to-order item (no ATP check)	For MTO. Uses sales-order special stock (sales order stock)
TAP (custom, recommended)	Project item	Specifies the WBS element as the account assignment object. The SD-side starting point of production-number MRP.
TAS	Third-party order (drop shipment)	Shipped directly from the vendor to the customer. Can also be used for project procurement.

Item Category Configuration Field	Setting for Production-Number MRP	Reason
Billing relevance	B (billing plan) or F (order-related)	Use B when using milestone billing
Special stock	Q (project stock)	References Q-stock at the time of shipment
Requirements creation	X (independent requirements per WBS element)	The starting point for individual requirements

6-3　Schedule Line Category Configuration (VOV6)

The schedule line category controls which PP/MM function the SD demand is linked to. Under production-number MRP, the setting that serves as the starting point for “independent requirement → MD51 explosion” is important.

VOV6 Configuring the Schedule Line Category

Schedule Line Category	Linked To	Use in Production-Number MRP
CP (linked to MRP)	Generates a planned order via MRP	Standard stock sales for TAN items
CN (not linked to MRP)	No MRP linkage	Advance orders, etc.
CQ (project stock)	Shipped from Q-stock	The shipping schedule line for production-number MRP items
CS (linked to third-party order)	Automatically generates a purchase requisition	Combined with TAS (third-party order)

[Category CQ] Using CQ references Q-stock (project stock) at the time of shipment. Combining TAP or a custom item category with CQ completes the flow from sales order to Q-stock shipment.

6-4　Automatic Account Determination (VKOA)

Configures the posting of the revenue account, tied to the WBS element, to the corresponding G/L account when a sales order invoice (VF01) is issued.

VKOA Configuring SD Automatic Account Determination (Account Assignment)

(IMG path) Sales and Distribution > Basic Functions > Account Assignment/Costing > Revenue Account Determination > Assign G/L Accounts

Transaction/Event Key	Content	Role in Project Sales
KOFI	Revenue posting	The G/L revenue account posted to at VF01 (a project-specific revenue account is preferable)
KOFK	Posting to a cost center / CO object	Used for CO-PA integration

6-5　Configuring the Milestone Billing Plan

For ETO/MTO-type projects, milestone billing is used to issue invoices tied to contractual milestones (interim inspection, delivery, etc.).

(IMG path) Sales and Distribution > Billing > Billing Plan > Define Billing Plan Types

Configuration Field	Content
Billing plan type	Set to M (milestone)
Milestone reference	Linked to a PS milestone ID (CJ20N)
Billing amount determination	Order amount × milestone % (e.g., 30% at start / 40% interim / 30% completion)
Automatic billing	A setting that allows VF01 to run automatically once a milestone is achieved

Chapter 7　CO/FI Module Configuration

7-1　Activating the Controlling Area (OKKP)

Activates each CO component (cost center accounting, internal orders, project accounting, etc.) at the controlling-area level. Activating commitment management is especially important for production-number MRP.

OKKP Configuring CO Component Activation Flags

CO Component	Setting for Production-Number MRP	Consequence if Not Set
Commitment management	Mandatory: Active	Confirmed amounts for purchase requisitions/purchase orders will not appear in CJI3/CJ40
Project System (PS)	Mandatory: Active	Postings to the WBS element cannot be made
Cost Center Accounting (CCA)	Recommended: Active	Required to allocate internal labor cost (CATS) to the WBS
CO-PA (Profitability Analysis)	Depends on requirements	Used to manage project profit/loss by profit center

7-2　Revenue Recognition Configuration (Percentage-of-Completion Method)

When applying the percentage-of-completion (POC) method to an ETO-type project, the revenue recognition method and results analysis version must be configured.

OKG1 Configuring the Revenue Recognition Method (Results Analysis Method)

(IMG path) Controlling > Product Cost Controlling by Sales Order > Revenue Recognition > Define Results Analysis Method

Revenue Recognition Method	Calculation	Use Case
01: Completed method	Full amount recognized upon completion	Short-term, small-scale projects (non-ETO)
02: Cost-based POC (percentage of completion)	(Cumulative actual cost ÷ budgeted cost) × order amount	Percentage-of-completion method (most common for ETO)
03: Completed-contract method	Partial recognition at milestone achievement	When contractual milestones are clearly defined
05: Profit-plan-based POC	Revenue recognition based on the profit plan	Complex projects where the profit margin is critical

OKG8 Configuring the Results Analysis Version

[Note] The method configured in OKG1 is used tied to a version in OKG8. VF44 (revenue recognition execution) performs its calculation with reference to this version. In the FI month-end close, process in the order “run VF44 → CJ88 (WBS settlement).”

7-3　Initial Account Assignment (OKB9)

Defines the automatic FI posting account used when an expense arises from a CO object (WBS element, internal order, etc.). Under production-number MRP, the setting for automatic posting “G/L account → WBS element” is important.

OKB9 Configuring the Initial Account Assignment

Configuration Field	Content for Production-Number MRP
Valuation area	Configured as a combination of plant + company code
G/L account	The cost account to which WBS expenses are posted (e.g., construction cost, subcontracting cost)
CO object	Turn ON the “Use WBS element” flag
Cost center	Configured so that posting to the WBS element takes priority

7-4　CO Commitment Management

Commitment management is a function that tracks, within CO, the amount of purchase requisitions and purchase orders (amounts for which the obligation to pay is confirmed but no posting has yet occurred). It is important for grasping, in real time, how much of the project budget has been consumed.

• When a purchase requisition (PR) is issued: recorded as a commitment (reservation)

• When a purchase order (PO) is issued: the commitment is converted into a confirmed commitment

• At goods receipt/invoice verification: the commitment is released and the actual cost is posted

[Integration with budget management] Activate commitment management in OKKP → turn on the budget management flag in the OPS1 project profile → register the budget in CJ30 → configure the OPBK availability check. Only once these four steps are all in place does “blocking budget overruns at the time a purchase order is issued” actually work.

7-5　Universal Journal (ACDOCA) and PS Integration

In S/4HANA, all FI, CO, and MM postings are integrated into the ACDOCA table. Cost postings to the WBS element are recorded to ACDOCA in real time, and the WBS element, G/L account, profit center, and cost center can all be referenced simultaneously from ACDOCA.

Constraints in the Legacy System (ECC)	Improvement with S/4HANA (Universal Journal)
CO-FI discrepancy: CO cost elements and FI G/L accounts reside in separate tables	Unified in ACDOCA. CO-FI reconciliation (e.g., KE5Z) is no longer necessary
Real-time confirmation of the WBS balance is slow	The WBS balance is updated the instant a posting occurs
CO-PA posting is a monthly batch process	CO-PA is updated simultaneously with the actual posting

Chapter 8　Running MD51 (Project MRP)

8-1　Difference Between MD51 and MD01N

Comparison Item	MD01N (Regular MRP)	MD51 (Project MRP)
Scope	Entire plant	A specified project / WBS element
Origin of requirements	Independent requirements (planning) + dependent requirements	Material requirements of the WBS element (network materials / order linkage)
Treatment of stock	References the entire plant stock	References Q-stock (tied to the WBS element) individually
Planned orders generated	Planned orders common to the plant	Planned orders tied to the WBS element
Use case	Mass-produced items (MTS/ATO)	Project items under production-number management (MTO/ETO)

8-2　Steps to Run MD51

MD51 Running Project MRP

Parameter	Recommended Setting	Meaning
Project	The target project ID	Processes only the WBS elements of the specified project
Processing scope	Can be restricted to a WBS element	Allows MRP to be run separately by phase
Processing key	NETCH (regenerative planning)	Use NETCH for the initial run; NETCD is more efficient for subsequent runs
Create purchase requisition	2 (create immediately)	Distinguish from 1 (planned orders only)
Scheduling	1 (basic scheduling)	Select 2 (capacity planning) also when network activities exist
Create purchase requisitions	2 (immediately)	Note the difference from 1 (planned orders only)

☞ Because MD51 explodes all items under the WBS elements of the target project, a large number of planned orders can be generated on the first run. Always run it against a test project before applying it to production, and check the explosion results (MD04) before rolling it out to production.

8-3　Checks After Running MD51

MD04 Stock/Requirements List (by WBS Element)

MDBS Checking Planning Run Exception Messages

MD16 Reviewing/Converting Planned Orders (into purchase orders or production orders)

[Exception messages] If a large number of exception messages (delays, excess stock, capacity shortages, etc.) appear after running MD51, the planning parameters (lead time, BOM configuration) need to be reviewed. It is recommended to first run a test on a small-scale project.

Chapter 9　Managing Q-Stock (Project Stock)

9-1　What Is Q-Stock?

Q-stock (project stock) is dedicated stock tied to a WBS element or network activity. Even for the same material, if the WBS element differs the stock is managed separately and cannot be applied to the demand of another project.

Stock Type	Management Unit	Diversion to Other Projects	Treatment at Settlement
Regular stock (unrestricted stock)	Plant + storage location	Possible	Continues to be held as plant stock
Q-stock (project stock)	WBS element	Not possible (in principle)	Transferred to project expense at settlement via CJ88
Sales order stock (E-stock)	Sales order number + item	Not possible (in principle)	Posted as an expense when the order is completed

9-2　Main Movement Types for Q-Stock

Movement Type	Content	Transaction
101Q	Goods receipt from a purchase order (into Q-stock)	MIGO (goods receipt)
261Q	Material issue to a production order (from Q-stock)	MIGO (goods issue)
281Q	Material issue to a network activity (from Q-stock)	MIGO (goods issue)
411Q	Conversion from Q-stock to regular stock	MIGO (specifying the movement type)
412Q	Conversion from regular stock to Q-stock (assigning existing stock to a project)	MIGO (specifying the movement type)
551Q	Scrapping of project stock	MIGO (scrapping)

9-3　Checking the Q-Stock Balance

MB52 Warehouse Stock List (can be filtered by Q-stock)

MB53 Stock List by Plant/Storage Location

MD04 Stock/Requirements List (by WBS Element)

CJI3 Project Actual Line Items (including cost collection)

Chapter 10　Integration with SD (Sales Order → WBS Linkage)

10-1　Linking the Sales Order to the WBS Element

Specifying the WBS element on the account assignment tab of the sales order (VA01) line item causes revenue and cost to be posted tied to that WBS element.

Sales Order Line Item	Setting for Production-Number MRP
Item category	TAP (project item) or TAK
Account assignment category	Q (shipped from project stock) or P (direct cost posting)
WBS element	Enter the WBS element ID that is the billing element (the one whose “Billing element” flag is ON in OPSA)
Schedule line category	CQ (references Q-stock)

10-2　Two Patterns for Order Integration

Pattern 1: Direct Sales Order Linkage (Sales Order Stock)

A pattern in which stock and procurement are individually managed using the sales order number as the key, without using a WBS element (the SOI method). Suited to small-scale orders with few process steps. The starting point is order-based MRP (PP), not production-number MRP.

Pattern 2: Via WBS (Production-Number MRP)

A pattern in which a WBS element is linked to the sales order and MRP explosion is performed via MD51. Suited to ETO/MTO projects with many process steps and a long duration.

Comparison Item	Pattern 1 (SOI)	Pattern 2 (WBS-Based Production-Number MRP)
Stock management	Tied to the sales order number (E-stock)	Tied to the WBS element (Q-stock)
MRP origin	The sales order line item	Material requirements of the WBS element
Managing multiple processes	Difficult (a single order is typical)	Possible (process control via the network)
Cost management	Cost by sales order (CO-PC)	Cost by WBS element (PS)
Suitable projects	Short-process order items (molds, single-piece parts, etc.)	Long-process projects (plants, equipment, etc.)

10-3　Account Assignment Flow Between SD and PS

Business Event	Posting Destination	Journal Entry (Simplified)
Goods receipt (101Q)	Q-stock (balance sheet asset)	Dr: Q-stock / Cr: GR/IR clearing
Invoice verification (MIRO)	GR/IR clearing	Dr: GR/IR clearing / Cr: Accounts payable
Goods issue (VL01N)	WBS element (cost of goods sold)	Dr: Cost of goods sold / Cr: Q-stock
Invoice issuance (VF01)	WBS element (revenue)	Dr: Accounts receivable / Cr: WBS revenue
WBS settlement (CJ88)	G/L account / profit center	Dr: Expense / Cr: Work in process

[Account assignment category] Setting the account assignment category of the sales order line item to Q (project stock) causes Q-stock to be automatically consumed at the time of shipment. On the SD configuration side, be sure to combine category Q correctly with the item category and schedule line category (see Chapter 6).

Chapter 11　Integration with MM (Procurement Flow)

11-1　Purchase Orders for Projects

Purchase requisitions generated by production-number MRP are converted into purchase orders via ME21N (or automatic conversion via ME59N), the same as a normal MM purchasing flow. The difference from a regular purchase order is that the WBS element is automatically set as the account assignment object.

Purchase Order Field	Setting for Production-Number MRP	Note
Account assignment category	Q (project stock) or P	Set automatically at MD51 explosion
WBS element	The relevant WBS element ID	Set automatically at MD51 explosion
Delivery date	The scheduled date calculated by MD51	Linked to the schedule of the network activity
Goods receipt storage location	A storage location dedicated to the project (recommended)	For visibility of Q-stock management

11-2　Using Account Assignment Category “Q” Versus “P”

Category	Inventory Posting	Timing of Expense Posting	Example
Q (project stock)	Posted as Q-stock	At the time of issue (261Q/VL01N)	Parts, materials, semi-finished goods (items requiring inventory management)
P (project direct)	No posting	Posted directly as an expense at goods receipt/invoice verification	Service fees, subcontracting fees, temporary materials (items not held as inventory)

11-3　Integration with Subcontracting

When part of a production-number MRP project’s process is subcontracted (PP subcontracting), the subcontract purchase order is also processed tied to the WBS element.

ME21N Subcontract Purchase Order (Account Assignment P + WBS Element Specified)

MIGO (Movement Type 541) Issue of Company-Owned Materials to a Subcontractor

MIGO (Movement Type 101) Receipt of Processed Goods from a Subcontractor

MIRO Invoice Verification for Subcontracting Fees (Cost Posted to the WBS)

11-4　Advance Ordering of Long-Lead-Time Items

It may be necessary to place advance orders for key long-lead-time materials before the project order is finalized.

• Advance ordering stage: place a provisional order with account assignment category “K (cost center)” → change to the WBS element (Q) once the order is finalized

• Alternatively: place the advance order under a provisional project (dummy WBS) → transfer to the real WBS once the project is finalized

☞ When goods receipt of materials procured in advance is to be managed as Q-stock, an account assignment change (Q → Q) is required on the purchase order. Because the account assignment cannot be changed after goods receipt, be sure to change it to the correct WBS element before goods receipt.

Chapter 12　Integration with PP (Production Order Explosion)

12-1　Production Orders for Projects

Planned orders (for manufacturing) generated by MD51 explosion are converted into production orders via CO40 (mass conversion) or CO01 (individual conversion). Production orders for production-number MRP have the following characteristics.

Production Order Attribute	Content	Difference from a Regular MTO Order
Account assignment	WBS element (mandatory)	A sales-order SOI order uses E-stock; being tied to Q-stock is the distinguishing feature of PS production-number MRP
Order type	PP02, etc. (the PS-oriented type configured in OPL8)	Using a type separate from mass-produced items is recommended
Q-stock goods receipt	Into Q-stock via MB31 (movement type 101Q)	A regular MTO order posts goods receipt into E-stock
Cost collection	Production order cost → settled to the WBS element via CO88	Rolled up into the project cost

12-2　Cost Flow Between the Production Order and the WBS Element

Flow	Process	T-Code
① Material issue	Issue from Q-stock to the production order (movement type 261Q)	MIGO
② Labor entry	Confirmation of work performed (CO11N) → posted to the WBS at activity price × labor hours	CO11N / CATS
③ Subcontracting process	Subcontracting cost posted to the production order	MIRO
④ Finished-goods receipt	Receipt of finished goods from the production order into Q-stock	MB31 (101Q)
⑤ Production order settlement	Production order cost balance transferred to the WBS element (CO88)	CO88
⑥ WBS settlement	Work-in-process balance of the WBS element transferred (CJ88)	CJ88

12-3　Design Considerations for BOMs and Routings

• Clearly separate the BOM structures for project-dedicated items and standard items. If BOM components requiring Q-stock management and those not requiring it are mixed together for a production-number MRP item, the configuration of the special procurement key becomes complicated.

• Production version (C223): used when the same material uses a different BOM/routing for each project. Allows specification changes to be managed by production number.

• In ETO projects, the BOM and routing are often created only after the order is finalized. Because explosion cannot occur unless the BOM and routing are registered before MD51 is run, managing the sequence “design completion → master data registration → run MD51” is important.

C223 Configuring the Production Version

CS61 Creating a Project-Dedicated BOM

Chapter 13　Overall Picture of the Integrated SD/MM/PP Flow

13-1　ETO/MTO Production-Number MRP, End to End

Step	Business Activity	Main T-Code	Module	Key Points
① Order acquisition	Inquiry / quotation	VA21/VA01	SD	Create a rough cost estimate at the quotation stage (a provisional project via CJ20N)
② WBS creation	Configure the project structure	CJ01/CJ20N	PS	Register the WBS element with the MRP-relevant flag (using the profile configured in OPSA)
③ Budget registration	Approve the project budget	CJ30	PS	Set the cost budget for each WBS element (the starting point for the OPBK availability check)
④ Order confirmation	Set the WBS element on the sales order	VA01	SD	Configure item category TAP + schedule line CQ + account assignment Q
⑤ BOM/routing registration	Master data registration after design completion	CS61/CA01	PP	A prerequisite for MD51 explosion. Watch the design lead time carefully for ETO projects
⑥ Run MD51	Project MRP explosion	MD51	PP/PS	Generates planned orders (purchase requisitions/production plans) per WBS element
⑦ Purchase order	Purchase requisition → purchase order	ME21N/ME59N	MM	The WBS element is specified with account assignment Q. The budget check (OPBK) is executed
⑧ Goods receipt	Goods receipt into Q-stock	MIGO (101Q)	MM	Posted to the books as Q-stock. Automatically posted via OBYC/BSX
⑨ Production order	Create and execute the production order	CO01/CO11N	PP	Use an order type tied to the WBS (as configured in OPL8)
⑩ Q-stock issue	Issue to the production order	MIGO (261Q)	MM	Materials are issued from Q-stock to the production order
⑪ Production-completion receipt	Finished goods into Q-stock	MB31 (101Q)	PP/MM	Finished goods are received into Q-stock, awaiting shipment
⑫ Production order settlement	Production order cost → to the WBS	CO88	PP/CO	The production order’s cost balance is transferred to the WBS element
⑬ Shipment	Shipment from Q-stock to the customer	VL01N	SD	References and consumes Q-stock via the CQ schedule line
⑭ Invoice issuance	Sales invoice	VF01	SD	Revenue is automatically posted to the WBS element via the VKOA configuration
⑮ Month-end close	Revenue recognition / WBS settlement	VF44/CJ88	PS/CO	Clears work in process using the percentage-of-completion method (OKG1 configuration) + WBS settlement

13-2　Key Points of the Inter-Module Interfaces

Integration	Key Point
SD → PS (Sales order → WBS)	Configuring the account assignment category Q and the WBS element ID on the sales order line item is the core of the connection
PS → PP (WBS → production order)	After MD51 explosion, planned orders are converted into production orders via CO40. The order type requires a WBS-linked configuration
PP → MM (Production order → Q-stock)	Correctly distinguish between movement types 261Q/281Q/101Q. Check the OMJJ configuration
MM → FI (Goods movement → posting)	OBYC automatic account determination. Confirm that BSX (goods receipt), WRX (GR/IR), and GBB (issue) are tied to the correct G/L accounts
PS → CO (WBS → revenue recognition)	The execution order of VF44 (revenue recognition) and CJ88 (WBS settlement). Presupposes the OKG1/OKG8 configuration

Chapter 14　Troubleshooting and Operational Notes

14-1　Common Configuration Mistakes and Remedies

Symptom	Cause	Where to Check	Remedy
Running MD51 does not generate any planned orders	The individual/collective requirements indicator in the material master MRP2 view is set to “2 (collective)”	Check the MRP2 view in MM03	Change the individual/collective requirements indicator to “1 (individual)” in MM02
Same as above	The special procurement key is not set, or is not the one for Q-stock	Check the special procurement key in the MRP2 view in MM03	Define the special procurement type in the IMG and set it on the material master
Same as above	The MRP-relevant flag of the WBS element is OFF	Check the attributes of the WBS element	Turn on the MRP-relevant flag in the profile via OPSA, and reapply it to the WBS element
Goods receipt does not go into Q-stock but into regular stock	The WBS element was not specified when entering MIGO	Check the account assignment tab of the MIGO document	Always enter the WBS element on the account assignment tab when entering MIGO. Alternatively, specify category Q + the WBS already at the purchase order stage
No budget error occurs when issuing a purchase order (the check does not run)	The OKKP/OPS1/OPBK/CJ30 settings are not all in place	Check each setting in order	Refer to the configuration dependency table in Chapter 3 / Section 7-1 and check for missing configuration
Production order cost is not collected onto the WBS element	The WBS element is not set in the settlement rule of CO88 (production order settlement)	Check the settlement rule tab in CO03 (display production order)	Check the automatic settlement rule setting of the order type (the settlement configuration of the order type as configured in OPL8)
Running VF44 (revenue recognition) produces a calculation result of 0	The revenue recognition method in OKG1 is not configured, or is not linked to an OKG8 version	Check OKG1/OKG8	Link method “02 (cost-based POC)” to an OKG8 version and apply it to the WBS element
A work-in-process balance remains on the balance sheet even after the project is complete	CJ88 (WBS settlement) has not been executed	Check the WBS balance in CJI3	Run CJ88 (final settlement) to zero out the work-in-process balance

14-2　Monthly Operations Checklist

• □ Has MD51 been run for all projects that require it?

• □ Have the planning-run exception messages been checked and addressed (MDBS)?

• □ Has excess or shortage of Q-stock been checked (MB52/MD04)?

• □ Has the unsettled balance of production orders been checked and has CO88 been run?

• □ Has VF44 (revenue recognition) been run (for projects subject to the percentage-of-completion method)?

• □ Has WBS element settlement been run via CJ88?

• □ Has the project budget-versus-actual variance report been checked (S_ALR_87013532)?

• □ Has it been confirmed that the commitment management balance (open purchase requisitions/POs) is within the budget?

14-3　Processing at Project Cancellation

MD16 Manually Deleting Planned Orders

ME22N Changing/Canceling a Purchase Order

MIGO (411Q) Converting Q-Stock to Regular Stock

CO78 Canceling/Scrapping a Production Order

CJ88 Final Settlement (Zeroing Out the Work-in-Process Balance)

CJ20N Changing the WBS Element Status from TECO to CLSD

☞ If an unsettled balance (work in process) remains on the WBS element of a canceled project and it crosses a fiscal period boundary, an incorrect balance will be posted on the balance sheet. Once cancellation is confirmed, all settlement processing should be carried out promptly.

Appendix A　Production-Number MRP SPRO Configuration Checklist

No.	Module	Configuration	T-Code/IMG Path	Done
1	PS	Create the project profile (for production-number MRP)	OPS1	□
2	PS	Create the WBS element profile (MRP-relevant flag ON)	OPSA	□
3	PS	Configure the network profile	OPS2	□
4	PS	Configure the budget profile (availability check)	OPBK	□
5	PS	Configure the settlement profile	OKO7	□
6	PS	Project definition number range	CJ82	□
7	PP	Create the MRP controller (dedicated to PS)	OMD0	□
8	PP	Define the special procurement type (for Q-stock, e.g., 40/70/71)	IMG (PP > MRP > Master Data > Special Procurement Type)	□
9	PP	Configure the scheduling parameters	CPU3	□
10	PP	Create the production scheduling profile	OPKP	□
11	PP	Order type / plant assignment (order type for PS)	OPL8	□
12	PP	Production scheduling profile	OPPQ	□
13	MM	Configure account assignment category Q (WBS element field mandatory)	OME9	□
14	MM	Check movement types (101Q/261Q/281Q/411Q)	OMJJ	□
15	MM	Configure automatic account determination (BSX/WRX/GBB)	OBYC	□
16	MM	Configure the valuation class (dedicated to Q-stock)	OMSK	□
17	MM	Configure tolerances	OMR6	□
18	SD	Configure the sales order type (supports WBS account assignment)	IMG (SD > Sales > Sales Document Types)	□
19	SD	Configure the item category (TAP / Q-stock support)	VOV7	□
20	SD	Configure the schedule line category (CQ)	VOV6	□
21	SD	Configure automatic account determination (VKOA)	VKOA	□
22	CO	Activate the controlling area (commitment / PS / CCA)	OKKP	□
23	CO	Configure the revenue recognition method (POC method)	OKG1/OKG8	□
24	CO	Configure the initial account assignment	OKB9	□

Appendix B　List of Key Production-Number MRP Transactions

Category	T-Code	Content
Material master	MM02/MM03	Change/display the material master (MRP view: individual/collective requirements indicator, special procurement key)
WBS configuration	CJ01/CJ20N	Create the project/WBS element (configure the MRP-relevant flag)
	OPSA	Configure the WBS element profile
	CJ30	Register the budget
Run MRP	MD51	Run project MRP
	MD16	Review/convert planned orders (into orders/purchase orders)
	MD04	Stock/requirements list (by WBS)
	MDBS	Check MRP exception messages
Purchasing	ME21N	Purchase order (account assignment Q/P, WBS specified)
	ME59N	Automatic conversion of a purchase requisition into a purchase order
	MIGO (101Q)	Goods receipt (into Q-stock)
	MIRO	Invoice verification
	MRRL	ERS automatic settlement
Manufacturing	CO01/CO40	Create a production order (tied to the WBS)
	CO11N	Confirm production order activity
	MIGO (261Q)	Q-stock issue to a production order
	MB31 (101Q)	Goods receipt of completed production into Q-stock
	CO88	Production order settlement (transferred to the WBS element)
Inventory	MB52	Warehouse stock list (including Q-stock)
	MB53	Stock list by plant/storage location
	MIGO (411Q)	Conversion from Q-stock to regular stock
Settlement / revenue	CJ88	WBS element settlement
	VF44	Run revenue recognition (percentage-of-completion method)
	S_ALR_87013532	Project budget-versus-actual comparison
	CJI3	Project actual line items