C_TS422_2023 SAP Certified Associate - SAP S/4HANA Cloud Private Edition, Production Planning and Manufacturing Questions and Answers

In SAP S/4HANA, awork center hierarchy(transaction CR21/CR22) organizes work centers for capacity planning and evaluation:

A group of alternative work centers providing a cumulative available capacity for production(B): A work center hierarchy groups multiple work centers (e.g., CR01-defined centers) into a tree structure (e.g., a top node with sub-nodes). The system aggregates their capacities (visible in CM01) into a cumulative total, allowing planners to evaluate or assign production across the group as a single capacity pool, often used in bottleneck analysis or reporting.

Hierarchy levels by priorities(A) isn’t correct—priorities are set in routings or PP/DS, not hierarchies, which focus on capacity aggregation.Work centers in a production line sequence(C) reflects routing (CA01) or REM line hierarchy (LDM1), not a work center hierarchy.Parallel sequence for splitting quantities(D) is a routing concept (Parallel Sequence), not a hierarchy function. This is per SAP’s capacity planning documentation.

In SAP S/4HANA, production orders can be created using various methods depending on the business scenario:

Create without material(B): Using transaction CO07, you can create a production order without referencing a material master. This is useful for one-off production (e.g., rework or testing) where no standard material is involved, requiring manual entry of components and operations.

Create in Kanban process(D): In a Kanban-controlled environment (configured via PKMC), a production order can be created automatically when a Kanban bin is set to "Empty." The system uses the production supply area and control cycle to generate the order (e.g., order type PP01), supporting lean manufacturing.

Convert a purchase requisition(A) applies to procurement, not production order creation—planned orders from MRP are converted (CO40/CO41), not purchase requisitions.Create by order release(C) is not a method—release is a subsequent step (CO02), not a creation process. This aligns with SAP’s production order creation options.

Cost Object Controlling (COC) in SAP S/4HANA for production orders can be configured as order-related (each order is a cost object) or product-related (costs are collected at the product level via a product cost collector). Key considerations include:

In product-related COC, all costs are debited and credited to a product cost collector(B): In this approach (configured via transaction KKF6N or Customizing: Production > Product Cost Controlling > Product Cost Collectors), all production costs (material, labor, overhead) for a material are aggregated on a single cost collector, regardless of individual orders. This simplifies cost tracking for repetitive manufacturing scenarios.

Order-related COC is beneficial in a flexible production environment(D): In flexible or make-to-order production, where each order has unique specifications or costs (e.g., varying BOMs or routings), order-related COC (configured in the order type, OPL8) assigns costs to individual production orders, providing detailed visibility and control.

Product-related COC for co-products(A) is incorrect—co-products typically use order-related COC with a settlement rule to apportion costs, not product-related collectors.In order-related COC, individual production orders do NOT have cost segments(C) is false—each order has its own cost segments (e.g., material, activity) for detailed analysis. This aligns with SAP’s cost controlling documentation.

In SAP S/4HANA Cloud Private Edition, Advanced Planning (PP/DS) integrates with core master data, and the "Advanced Planning" flag activates PP/DS-specific planning. This flag can be set in:

Work center(A): In the work center (transaction CR02, Basic Data tab, field: Advanced Planning), checking this flag (or integrating with a resource in APO/PP/DS) enables detailed scheduling and capacity planning in PP/DS. It designates the work center as a resource for finite scheduling (e.g., in /SAPAPO/RES01).

Material(D): In the material master (MM02, Advanced Planning tab, field: PP/DS Planning), activating this flag makes the material relevant for PP/DS planning. It enables features like detailed scheduling, heuristics, and integration with APO or embedded PP/DS functionalities.

Plant(B) doesn’t have an Advanced Planning flag—PP/DS activation is at the system or object level (e.g., via CIF integration model), not plant-specific.Production version(C) (MRP 4 view) links BOMs and routings but lacks a specific PP/DS flag—its relevance comes from the material and work center settings. This is per SAP’s PP/DS master data setup.

Dependent requirements in SAP S/4HANA represent the demand for components or assemblies triggered by the production of higher-level materials. These arecreated on assembly level during the planning run(B) in classic MRP when the system explodes the bill of material (BOM) of afinished product or assembly, calculating requirements based on independent requirements (e.g., sales orders or planned independent requirements) and the BOM structure. This occurs in transactions like MD01/MD02, where MRP generates dependent requirements for all relevant levels.

InAdvanced Planning (PP/DS), dependent requirements arecreated with exact times(C) due to the detailed scheduling capabilities of PP/DS. Unlike classic MRP, which uses daily or weekly buckets, PP/DS schedules requirements with precise timestamps, aligning them with production and procurement timelines. Option A is incorrect because dependent requirements are derived from independent requirements, not created simultaneously. Option D is false, as dependent requirements apply to any BOM structure, not just multilevel ones.

In SAP S/4HANA, the item category in a BOM (transaction CS01/CS02, field: Item Category) classifies components and determines their handling in production and procurement. Standard item categories include:

Variable-size item(A): Item category "R" (Variable-Size Item) is used for components with dimensions (e.g., sheets, pipes) where quantity is calculated based on size data (entered in the Variable-Size Item Data tab). It’s common in manufacturing for materials cut or sized during production.

Preliminary item(C): Item category "V" (Preliminary Item) is a placeholder for components not yet fully specified (e.g., during design phase). It allows BOM creation to proceed, with details added later, and is valid for planning purposes.

Work item(B) is not a standard BOM item category—"L" (Stock Item) or "N" (Non-Stock Item) might apply to work-related components, but "Work Item" isn’t a defined term.WBS item(D) (Work Breakdown Structure, category "W") relates to Project Systems (PS) BOMs, not standard production BOMs in PP, requiring PS integration. This is per SAP’s BOM item category definitions.

In SAP S/4HANA, a production order (transaction CO01) requires a valid production version (material master, MRP 4 view). If none can be selected, possible reasons include:

The order lot size is NOT within the validity range of a production version(A): Each production version specifies a lot size range (e.g., 100-1000 units). If the order quantity (entered in CO01) falls outside this range, the version is invalid, and the system cannot select it.

All production versions for the material are locked(C): If production versions are locked (MRP 4 view, field: Lock indicator), they are excluded from planning and order creation, even if otherwise valid, preventing selection.

NO production lines assigned(B) is irrelevant—production versions link BOMs and routings, not production lines (a repetitive manufacturing concept).NO BOMs assigned(D) would invalidate a version, but the system checks BOM validity within the version, and this is typically caught during version creation (C223), not order creation. This is per SAP’s production version validation rules.

Simple discontinuation in SAP S/4HANA (material master, MRP 4 view, fields: Discontinuation Indicator, Effective-Out Date, Follow-Up Material) replaces a discontinued component with a follow-up material when stock is depleted. If the available stock is zero and the discontinuation date is in the past:

Material requirements planning(C): MRP (MD01/MD02) is affected because it checks the discontinuation settings. When stock is zero and the effective-out date has passed, MRP stops generating requirements for the discontinued material and creates them for the follow-up material instead (visible in MD04). This ensures planning continuity with the replacement.

Backflushing(A) (e.g., during CO11N) uses existing stock or reservations, not directly impacted by discontinuation unless stock is unavailable—but it’s a downstream process.Kanban(B) relies on replenishment triggers, not discontinuation logic, though stock-outs could disrupt it indirectly.Production order release(D) (CO02) checks material availability, but discontinuation is handled in MRP, not at release. This is per SAP’s discontinuation process.

In SAP S/4HANA, theplanning table for repetitive manufacturing(transaction MF50) is a tool for managing production quantities and schedules in a repetitive production environment. Planners can:

Change the assignments of production quantities to production lines(A): In MF50, planners can reassign planned production quantities (e.g., run schedule quantities) from one production line (defined in the production version, MRP 4 view) to another within the same material, adjusting the distribution based on capacity or availability (visible in the "Assignment" view).

Reschedule and deallocate operations(D): Planners can reschedule production quantities to different dates (e.g., drag-and-drop in the graphical view) or deallocate them from a line (e.g., by setting quantities to zero or removing assignments), providing flexibility to adapt to changes in demand or capacity.

Create new production quantities(B) is typically done via demand management (MD61) or MRP, not directly in MF50, which adjusts existing plans.Dispatch operations to work centers(C) applies to discrete manufacturing (e.g., in CM21 or PP/DS), not repetitive manufacturing, where operations are tied to production lines in the planning table. This is per SAP’s repetitive manufacturing documentation.

In SAP S/4HANA PP/DS, restricting planners to specific resources for planning is achieved through:

Use a resource group(A): Resource groups (defined in /SAPAPO/RES_GROUP or Customizing) aggregate specific resources (e.g., work centers from CR02 flagged for PP/DS). Planners can be assigned to a resource group via authorization profiles (PFCG),limiting their planning scope in tools like the Planning Board (/SAPAPO/CDPS0) or Product View (/SAPAPO/RRP3) to only those resources, ensuring controlled access.

Use a planning group(B) isn’t a standard PP/DS term—MRP groups exist in classic MRP, but not for resource restriction in PP/DS.Use a propagation range(C) (in /SAPAPO/CDPSC11) defines the scope of planning changes (e.g., horizon), not resource access.Use a planning area(D) (e.g., in APO) organizes data but doesn’t restrict resource-specific planning—it’s more for data segmentation. Resource groups align with SAP’s PP/DS security model.

In SAP S/4HANA Cloud Private Edition, thetabular planning tablefor capacity planning (transaction CM22) offers chart-based views to analyze capacity:

Capacity requirements chart(B): This chart (accessible in CM22, graphical view) displays the capacity requirements (e.g., in hours) for operations across work centers over time, showing demand against available capacity to identify overloads or gaps.

Work center capacities chart(D): This chart shows the available capacity of work centers (defined in CR02, Capacity tab) over a time period, allowing planners to compare it with requirements and adjust dispatching (e.g., visible in the capacity overview tab).

Order (pool) chart(A) represents undispatched orders in the pool (e.g., in CM21), not a specific tabular chart type in CM22, which focuses on dispatched operations.Orders (dispatched) chart(C) isn’t a distinct chart—dispatched orders are part of the requirements chart. This is per SAP’s capacity planning table documentation.

In SAP S/4HANA, an operation withDispatchedstatus (set in CM21 or PP/DS after scheduling) is assigned a fixed time slot on a work center. Options for rescheduling include:

You can reschedule the operation using finite scheduling in a planning table(C): In the capacity planning table (CM21) or PP/DS Planning Board (/SAPAPO/CDPS0), you can manually drag-and-drop or use heuristics to reschedule a dispatched operation, respecting finite capacity constraints (work center, CR02, "Relevant to Finite Scheduling").

You can reschedule the operation in the Manage Work Center Capacity app(D): This Fiori app (SAP GUI equivalent: CM25) allows planners to adjust dispatched operations’ schedules by shifting them within available capacity slots, maintaining finite scheduling rules and updating the operation’s time.

Lead time scheduling(A) (e.g., in CO02) recalculates the entire order’s basic dates, not individualdispatched operations—it’s not used post-dispatch.Infinite scheduling in a planning table(B) (e.g., ignoring capacity) isn’t typical for dispatched operations, which are already capacity-constrained. This is per SAP’s dispatching options.

In SAP S/4HANA PP/DS, theFinite Scheduling with Reversestrategy (configured in the strategy profile, transaction /SAPAPO/CDPSC11) schedules operations backward from a fixed end date, respecting finite capacity. To allow scheduling in the past (e.g., before today’s date):

Specify a negative offset time(A): In the strategy profile (Detailed Scheduling tab, field: Scheduling Offset), a negative value (e.g., -2 days) shifts the scheduling reference point into the past. This allows operations to be scheduled before the current date, accommodating scenarios where late planning or historical adjustments are needed, while still respecting capacity constraints.

Negative opening period(B) isn’t a standard PP/DS parameter—it’s a production order term (MRP 2 view) for order start buffers, not scheduling control.Negative planning horizon(C) (Planning Horizon in /SAPAPO/CDPSC11) defines the future planning scope, not past scheduling.Negative PP/DS horizon(D) refers to the PP/DS planning horizon (Customizing), which limits planning scope forward, not backward. This is per SAP’s PP/DS scheduling configuration.

In SAP S/4HANA’sgraphical planning table(e.g., CM21 or PP/DS Planning Board, /SAPAPO/CDPS0), inserting an operation withforward planning direction(start from a fixed date and schedule forward) at a specific time on a work center with an existing operation:

The new operation is inserted at the desired time; the previously dispatched operation is moved forward(C): With forward scheduling (configured in the strategy profile, e.g., /SAPAPO/CDPSC11, Planning Direction: Forward), the system inserts the new operation at the specified time (e.g., via drag-and-drop). To maintain capacity feasibility, the previously dispatched operation is shifted forward (later in time) to avoid overlap, respecting the work center’s finite capacity (CR02, "Relevant to Finite Scheduling" checked).

Options A and B (leaving the existing operation unchanged) would violate finite scheduling rules, causing overlaps. Option D (moving backward) contradicts forward planning, which schedules from the start point onward. This is per SAP’s dispatching behavior in graphical tools.

In SAP S/4HANA Cloud Private Edition, alternative items in a BOM (transaction CS01/CS02) allow substitution of components based on predefined strategies. These are maintained in the BOM item data (Alternative Item Group and Strategy fields). The available strategies are:

Manual maintenance(C): This strategy (Strategy field: "1" - Manual Maintenance) allows planners to manually select which alternative item to use during production order processing (e.g., in CO02). The system does not automate selection, relying on user intervention based on availability or preference.

100% check(D): This strategy (Strategy field: "2" - 100% Check) ensures that only one alternative item is used per order, with the system checking availability (via ATP) for 100% of the required quantity. If the first item isn’t fully available, it moves to the next in the priority sequence (Priority field).

First in first out (FIFO)(A) is a stock management concept (e.g., in WM or batch determination),not a BOM alternative item strategy.Simultaneous(B) is not a standard strategy—alternative items are sequential or selective, not used simultaneously unless custom-developed. This aligns with SAP’s BOM functionality documentation.

For B- and C-classified materials (per ABC analysis, typically low-value or less critical items), SAP S/4HANA offers planning procedures to minimize effort:

Consumption-Based Planning(A): This method (configured with MRP types like "VB" - Reorder Point Planning or "VM" - Automatic Reorder Point, material master, MRP 1 view) relies on historical consumption data rather than detailed forecasts or BOM explosions. It triggers procurement when stock falls below a reorder point, reducing planning complexity—ideal for B/C materials with stable or predictable usage.

Subassembly Planning(B) (e.g., strategy 70) is used for assemblies with dependent requirements, requiring more effort due to BOM and routing maintenance.Advanced Planning(C) (PP/DS) offers detailed scheduling and optimization, overcomplicating planning for low-priority items.MaterialRequirements Planning(D) (MRP with type "PD") involves full BOM explosion and demand forecasting, which is effort-intensive and better suited for A-class materials. SAP recommends consumption-based planning for simplicity in such cases.

Aphantom assemblyin SAP S/4HANA is a virtual component that is not physically stocked—its components are directly consumed in the higher-level assembly. To set it up:

Select a special procurement type inside the material master(A): In the material master (MRP 2 view, field: Special Procurement), set the value to "50" (Phantom Assembly). Thistells MRP and production to bypass stocking the phantom material and explode its BOM directly into the next level (e.g., in CO01 or MD02).

Define the special procurement type inside the material BOM (bill of material)(D): In the BOM (CS02), for the phantom component, set the "Special Procurement" field (Item Detail screen) to "50." This overrides the material master setting for that specific BOM usage, ensuring the phantom behavior applies only in that context.

Use a special item category(B) like "L" (Stock Item) or "N" (Non-Stock) in the BOM (CS01, Item Category) defines component handling but does not designate a phantom—phantom status comes from procurement type.Select a special MRP type(C) (MRP 1 view) controls planning (e.g., "PD" for MRP), not phantom behavior. This is per SAP’s phantom assembly configuration.

In SAP S/4HANA, a "multiple BOM" refers to alternative BOMs (transaction CS01, field: Alternative) for the same material, allowing different component combinations. Reasons for these variations include:

Manufacturing date(A): Alternative BOMs can have different validity periods (Valid From/To dates in CS01 header). For example, a new BOM might replace an old one due to design changes effective from a specific date, resulting in different components based on when production occurs (checked in MRP or CO01).

Lot size(D): Each alternative BOM can specify a lot size range (CS01, header data, field: Lot Size From/To). Different component combinations might be optimal for small versus large production runs (e.g., bulk packaging for larger lots), leading to distinct BOMs tied to quantity.

BOM header status(B) (e.g., Active/Inactive) controls usability but doesn’t define component combinations—it’s a single status per BOM.BOM component status(C) isn’t a standard field—component relevance is managed via item category or deletion flags, not status, and doesn’t explain multiple BOMs. This is per SAP’s multiple BOM functionality.

In SAP S/4HANA PP/DS,mode selectionrefers to choosing between alternative production modes(combinations of resources and recipes) within detailed scheduling (e.g., /SAPAPO/CDPS0 or heuristics). It is used:

When alternative resources are used within one operation(B): In the PP/DS resource (mapped from work center, CR02) and operation (routing, CA02), modes define different resource options (e.g., Machine A vs. Machine B) for the same operation. Mode selection (configured in the PPM or PDS, /SAPAPO/RES01) allows PP/DS to pick the best resource based on availability, priority (Mode Priority field), or cost during scheduling.

Several operations for one product(A) involves operation sequencing, not mode selection.Several production versions(C) (MRP 4 view) define BOM/routing combinations at the material level, not within an operation.Multiple planned orders in parallel(D) relates to resource loading, not mode-specific choices. This is per SAP’s PP/DS scheduling options.

Before creating a bill of material (BOM) in SAP S/4HANA (transaction CS01), certain prerequisites must be clarified:

Is the material type allowed in the BOM?(B): The material type (material master, MM01) determines whether a material can be used in a BOM. For example, "FERT" (finished goods) or "HALB" (semi-finished) are typical header materials for production BOMs, while "ROH" (raw materials) are components. This is configured in Customizing (Logistics - General > Material Master > Define Attributes of Material Types), and the system checks this during BOM creation.

What status does the BOM have?(D): The BOM status (CS01, header data, field: BOM Status) must be defined—e.g., "1" (Active) for production use or "2" (Inactive) for testing. This status controls whether the BOM can be used in MRP or production orders, and it must be decided upfront to ensure correct application.

In which storage location is the BOM required?(A) is irrelevant—BOMs are plant-specific, not storage-location-specific (storage location is relevant for stock, not BOM structure).Which base unit of measure does the material have?(C) is important for component quantities but is a material master attribute (Basic Data view) checked during entry, not a pre-creation question. This is per SAP’s BOM creation process.

When a new MRP-relevant material in SAP S/4HANA supports both in-house production and external procurement (procurement type "X" in the MRP 2 view), MRP defaults to a specific behavior unless overridden by additional settings (e.g., source list, quota arrangement). By default,the MRP run assumes in-house production(B). This is because SAP’s standard logic prioritizes in-house production (procurement type "E") over external procurement ("F") when both are possible,unless a valid source of supply (e.g., scheduling agreement, contract) explicitly directs it to external procurement.

Option A is incorrect because external procurement requires a source list or quota arrangement to take precedence. Option C is false, as quotations are not a prerequisite for MRP planning; they are optional for external procurement. Option D is also incorrect—MRP will plan the material automatically based on its master data, not require interactive planning. This behavior is documented in SAP’s MRP processing rules.