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With the TOP Simplification List Items approach we want to start a S/4HANA SCN Blog series to provide more information about dedicated simplification items. Simplification items where we assume that any customer project has to deal with. The following S/4HANA SCN Blog is collecting these TOP Simplification Items with the links to the dedicated S/4HANA blogs.

The TOP Simplification List Items

Within this blog we want to provide additional information regarding the Simplification Item: Subcontracting in MRP

Simplification List Item Description

SAP ERP had three different ways of planning parts to be provided to a subcontractor:

•Planning subcontracting demand together with internal demand in the make-to-stock planning segment (3.0 logic)

•Separating subcontracting demand and stock into single subcontracting planning segments and planning uncovered subcontracting demand together with internal demand in the make-to-stock planning segment (4.0 logic)

•Planning the demand of each subcontractor separately using subcontracting MRP areas (available from SAP ERP release 4.5)

In SAP S/4HANA 1511, the 4.0 logic was removed while the 4.5 logic was simplified. The SAP S/4HANA MRP uses default planning parameters if MRP area–specific material master records do not exist. You only have to create an MRP area for every subcontractor. Of course, it is still possible to create MRP area/supplier-specific material master data if required.

Business Impact

The default way of planning parts to be provided to subcontractors is based on MRP areas. A subcontracting MRP area should be created for every subcontractor. You do not have to create an MRP area-specific material master record for every part to be provided to the subcontractor but of course this is possible if you want to overrule the default planning parameters.

Required and Recommended Action(s)

If you have several subcontractors requiring the same component materials and if you do not yet use MRP areas to plan the required components then proceed as follows:

  • Create MRP areas for every subcontractor (can be done before or after upgrade)
  • Run regenerative MRP after the upgrade

For more details see the PDF attached to the following SAP Note: