How to exclude PO from MRP calculation in S4 Hana Public Cloud

[Ketan7kar]

Hello SAP Experts,
I am currently working on manual recorder point planning for raw materials. I need to ensure that purchase orders are excluded from MRP calculations and that MRP only takes stock into consideration. Can you please provide guidance on the necessary steps and parameters that need to be set in the material master to achieve this? Additionally, I would appreciate a solution for On-premise also, as I can later relate it to the cloud.

[Ketan7kar]

Hello Friends,
It is a SAP public cloud so there is no scope for customization. Is there any std way via material data parameter like avialibilty check or something?

[DominikTylczyn]

Hello @Ketan7kar 

First, let me say that I don't really understand a business rationale of such a requirement. Excluding purchase orders from reorder point MRP planning will lead to excessive stock levels. Consider the following scenario:

1. your stock level falls below the reorder point
2. MRP run creates a new purchase requisition that is converted to a new purchase order; let's say that it takes a couple of days to deliver the purchase order
3. before the purchase order is delivered, MRP runs again; as the purchase order is excluded from the planning, MRP doesn't recognizes it and repeats the purchasing proposal
4. steps 2 and 3 can repeat several times before the first purchase order is actually delivered
5. now you have several more purchase orders that will eventually get delivered too and that will overshoot your stock levels

Is this really what you want to achieve?

MRP elements, e.g. purchase orders can be excluded from planning runs with the MD_CHANGE_MRP_DATA BAdI enhancement. For instance the CHANGE_MDPSX_MDLA method can manipulate purchase orders. If the method returns CH_EXIT = X, then the purchase order is excluded from the planning - see the documentation to the method:

Best regards

Dominik Tylczynski

[Ketan7kar]

Hello DominikTylczyn,
I really appreciate your help on this. Let me explain the situation. Our inventory capacity is very limited, and we consume goods on a weekly basis through process orders. The lead time to deliver goods is 120 days, almost 5 months excluding weekends. If I were to implement MRP today, it would deliver goods after 5 months, so the gap between today and 5 months from now would need to be manually filled. Therefore, the purchase orders created during this time frame should not be considered, otherwise the system will not generate purchase requests due to the shortage in inventory and the low Reorder Point (ROP). I hope this clarifies the situation.

[DominikTylczyn]

Hello @Ketan7kar 

I don't think reorder point planning procedure is the correct approach in your situation. Have a look at how ROP works - SAP Help Reorder Point Planning Procedure

Your reorder point needs to be high enough to cover requirements during the replenishment time. Your replenishment time is quite long, 120 days and your storage capacity is limited. I guess you can't keep 120 days worth of stock.

Why don't you use regular, PD type MRP planning process instead?

Best regards

Dominik Tylczynski