Confirm parent order when child order is confirmed

[johnsplit123]

Hi Experts,

We have a requirement where top level should be a phantom assembly and its next level to be inventoried, not the top level.

So is there any way that child order can confirmed and then parent will be auto confirmed, but inventory should show for child, not parent.

Any suggestion please.

Thank you.

Regards,

John S.

[Ndubuisi_PALMER]

Hello

Yes, your requirement can be fulfilled using phantom assemblies in SAP Production Planning (PP) and Material Requirements Planning (MRP), with the correct BOM and order management setup.

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Requirement Recap:

Top-level material should act as a phantom assembly (not inventoried).

The child level should be a stocked/inventoried item.

You want the child production order to be confirmed, and the phantom parent to be auto-confirmed, but only the child should generate inventory.

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Recommended Solution Using Phantom Assembly:

1. Material Master for Phantom Material (Top-Level):

Go to MM02 (Change Material).

View: MRP 2

Field: Special Procurement Type = 50 (Phantom Assembly)

MRP Type: Should allow BOM explosion (e.g., PD)

2. BOM Setup:

Create a BOM for the phantom parent material.

Include the child material as a component.

When you run MRP or create a planned order for the finished product that includes the phantom, the system will skip creating an order for the phantom and instead create orders for its components.

3. Routing and Order Setup:

Ensure the phantom assembly has no routing.

The child material (which is inventoried) should have its own production version, BOM, and routing.

4. Order Behavior:

When you run MRP:

No planned or production order will be created for the phantom.

A production order is created for the child material.

Once the child order is confirmed, the phantom is implicitly treated as confirmed (since it doesn’t physically exist).

5. Inventory Posting:

Inventory will be posted only for the child material.

The phantom assembly will not generate stock or inventory postings.

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Key Points Summary:

Object Configuration

Phantom Material Special Procurement Type = 50 (Phantom Assembly)

BOM Phantom as parent; child is a stocked component

Routing No routing for phantom; child has own routing if needed

Order Confirmation Confirm child production order; no order exists for phantom

Inventory Behavior Inventory is posted only for child, not for phantom

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Optional Enhancement (if you use PP-PI or advanced PP): If you need more control or automation (e.g., auto-confirming a logical structure), you could use co-product/by-product structures or custom BAdIs to simulate parent confirmation based on child order status. But in most discrete manufacturing cases, the phantom assembly logic is sufficient and standard.

[johnsplit123]

Hello Palmar, thank you for your reply. If top level is phantom, and if sales order is created against it, how the demand will be exploded to child level? For e.g. in case top level is NOT phantom, planned order will be created against sales orders and its DepReq will be passed on to the next level. However, if top level itself is phantom, how the demand will be passed on, please suggest.