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The Manufacturing Process Order Flow Between APO and SAP ERP

ByPrimary Researcher

Executive Summary

  • Part of the manufacturing process flow between APO and SAP ERP is the inbound receipt.
  • The process order is a production order for process industry manufacturing.

Introduction

I was recently asked the following question:

“When does APO no longer recognize a process order as an inbound receipt of inventory?”

This is essentially a question of when inventory is recognized within a production location.

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What is a Process Order?

A process order is the batch of a production run and is from the master recipe. They are created with PP-PI (SAP Production Planning – Process Industry).

SAP has the following to say about why the process – of goods receipt through the inbound delivery was designed as it was and its advantages. However, the question is not really different if a process order or production order (for discrete or repetitive manufacturing)

The significant advantage of depicting the goods receipt process through the inbound delivery function is that you can execute many processes in advance, even before the actual goods receipt posting takes place. 

 You have all the necessary information beforehand because the supplier notifies you of the inbound delivery ahead of time. The inbound delivery describes exactly which materials or pallets can be received on what date and at what time. – SAP Help

The Process Flow from APO to SAP ERP

The following process flow applies to manufacturing orders:

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Conclusion

Therefore, the answer to the question is that the process order is actually closed out after goods receipt.

References 

https://help.sap.com/saphelp_erp60_sp/helpdata/en/ba/917a3ba6912a61e10000000a114084/content.htm