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SAP Project Manufacturing Management and Optimization (PMMO) helps achieve greater efficiency with project manufacturing in an Engineer to Order (ETO) environment to deliver complex end products (for example: military aircrafts, ships and submarines, complex industrial machinery etc.), that often involves complex engineering and production processes.
In this blog post, we'll take a look at what's new in Project Manufacturing Management and Optimization (PMMO) in S/4HANA 2023 FPS1 Release. I also encourage you to check out my other blog posts to take a look at some of the key features available in previous releases.
Key Features in S/4HANA 2023 FPS1 Release
Let's take a look at the key highlights from 2023 FPS1 release in PMMO:
Settlement of PMMO relevant Production Orders
In my previous blog post, I had written about an enhancement that can be used to prevent PMMO relevant Manufacturing Production Orders (those that are account assigned to a Grouping WBS element) being settled through normal Order Settlement. With 2023 FPS1, there is no need for this enhancement, since a newly added configuration within PMMO now makes this possible without having the need for an enhancement.
Within the IMG node "Configure Client-Specific settings for Distribution", you can now specify a Settlement Profile. This Settlement Profile will be automatically used within the Order Settlement for any Production Order that is account assigned to a Grouping WBS (both Type 1 and Type 2 Grouping). The settlement profile should be configured via Transaction OK07 as "Not for Settlement".
By adding this Settlement Profile within PMMO configuration, all Production Orders (Order Category '10') that are account assigned to a Grouping WBS will be settled only through PMMO Cost Distribution and not through Order Settlement.
Excel upload for Exceptions Master Data
Similar to the excel upload feature that was available for Breakpoints in 2023 FPS0 release, this feature allows using an excel upload for Exceptions Master Data. The excel template depends on the Exception Handling Category. This feature uses the Function Module API PMMO_MAINTAIN_PEG_EXCEPTIONS, which performs the checks before data is inserted, updated or deleted.
Breakpoint Hierarchy
Breakpoints are used in PMMO to build a cost structure that differs from the production structure. Breakpoints allow costs to be redirected from individual requirement operative WBS to another cost object (Network Activity, WBS or Cost Center). In a project structure, an operative WBS can have various other operative WBS as lower-level nodes. With 2023 FPS1, Breakpoints can be set at higher level WBS structure with a hierarchy flag. When this flag is set, Pegging will determine all the lower level WBS nodes and apply the target breakpoint. This greatly reduces the number of Breakpoint records that need to be maintained in the Breakpoint table.
As you can see from the below example, the hierarchy flag provides the capability to set the breakpoint at any WBS element in the Contract hierarchy and reduces the number of entries needed to be maintained in the breakpoint table. An entry without the hierarchy flag set takes higher precedence over an entry with the hierarchy flag set.
As can be seen in the above example, the breakpoint entries need not be specified for every single WBS element, instead a higher level WBS Element in the hierarchy can be used to set the breakpoint and any WBS Elements that are added below this WBS Element would automatically be included during the Pegging Breakpoint processing.
The Pegging program applies the breakpoint respecting the hierarchy and the standard breakpoint processing logic.
The breakpoint master data excel upload utility (PMMO_BREAKPOINT_UPL) has also been extended to support the hierarchy indicator.
Distribution Balance Check enhancements
PMMO Distribution Balance Check (Transaction PMMO_DISTR_BALCHK) can help analyze undistributed balance on Group WBS after the PMMO Distribution run. In a perfect world, the balance on the Group WBS after the PMMO Distribution run should be 0. However, there are cases where the balance on the Group is not 0. This can be due to Pegging errors, costs on Group WBS that PMMO cannot distribute etc. In S/4HANA 2023 FPS1, the Distribution Balance Check has been enhanced to provide additional information in the output including MRP Order Qty, MRP Received Qty, PMMO Received Qty, PMMO Assigned Quantity, Period and Year that would help the user analyzing the results of the balance check. In addition, the results can be optionally saved and displayed when executing the Balance Check. Since the results can be persisted, customers can set thresholds for balances during period end closing to identify balances on the Grouping WBSs and Exception WBSs to decide whether month end closing should continue. The report also includes actual cost balances on the Default Exception WBSs (that are included in Transaction PMMO_PEGEXC) for Excess, Scrap, Loss and Underpeg costs that could not be allocated to the financial WBS elements.
Note that you can also use the standard PS reports like CJI3 to check balances on the Grouping WBS and Default Exception WBS Elements.
Summary
I hope this blog post keeps you up to date on the latest innovations in PMMO. Stay tuned for the next blog post on the latest features that will be available in PMMO in S/4HANA 2023 FPS2. As always, feedback and comments welcome!
