SAP Configuration ==> SAP Production Planning

Strategy 40 :-

1. Stocks on hand reduces the PIR during MRP run. 
e.g. if stock is 100 and PIR is 100, MRP run will not prompt 100 for procurement. if stock is 0 and PIR is 100, MRP run will prompt 100 for procurement.

2. Sales order creation reduces the PIR.
e.g. if PIR is 100, sales order 90, PIR becomes 10(withdrawal 90).

3. Delivery reduces the Sales Order.

Planned independent requirements are consumed by incoming sales orders so that the master plan is always adjusted to suit the current requirements situation. 
You must maintain the following master data for the finished product in the material master:

Strategy group 40 on the MRP screen. 
- Consumption parameters (Consumption mode, Bwd consumption, Fwd consumption) to allow consumption of independent requirements. If no consumption parameters are maintained in the material master, the system uses default values are taken from the MRP group. 
- To control consumption, you maintain a consumption mode as well as a consumption period. 

Item category group (for example, NORM) on the Sales Organization Data screen.

Four important points :-

1. Planned independent requirements are used to trigger the procurement and production of the necessary assemblies and components before receipt of the sales orders. 

2. As soon as the sales order is received, it consumes the planned independent requirements. 

3. An ATP (available to promise) logic during sales order processing will checks whether sufficient planned independent requirements have been planned to cover the sales order. 

4. Requirements from the sales orders are passed on to production and can lead to changes made to procurement if the requirements from the sales orders exceed the planned ndependent requirement quantities. If there is insufficient coverage of components (the sales order quantities exceed the planned independent requirement quantities), the sales orders cannot be confirmed. The system therefore automatically adjusts the master plan. Planned independent requirement quantities that are left unconsumed increase the warehouse stock of the finished product.

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SAP MRP - Materials Requirements Planning Configuration Hints and Tips 

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SAP PP (Production Planning) Configuration Hints and Tips

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