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SAP Glossary

Planned Order

The SAP planned order is used for preliminary planning of production requirements before specific production orders are created. It plays an important role in material requirements planning (MRP).

What is an SAP planned order?

A planned order is an order generated either automatically by the system or manually, which specifies a future production requirement.

Typical characteristics:

  • Includes material, quantity and date
  • Not yet released for production
  • Can be generated automatically by MRP
  • Serves as the basis for detailed planning 

What is the purpose of a planned order in SAP?

The planned order fulfils several important functions within production planning:

  1. Demand forecast

It indicates at an early stage when and in what quantities a material needs to be produced.

  1. Capacity planning

Planned orders provide an initial estimate of the required:

  • Machinery capacity  
  • Staff resources  
  1. Basis for production orders

Planned orders are subsequently converted into production orders or process orders.

How is an SAP planned order created?

Planned orders can be created in two ways:

  1. Automatically via MRP (Material Requirements Planning)
  • SAP analyses requirements (e.g. sales orders, forecasts)
  • The system automatically creates planned orders 
  1. Manuell durch den Disponenten
  • Via transactions or Fiori apps
  • For targeted planning or simulations 

Process flow: From planned order to production order

The typical procedure is as follows:

  1. Demand arises: e.g. customer order or forecast
  2. MRP run: the system calculates demand
  3. Planned order: proposal for production
  4. Review: the planner checks the date and quantity
  5. Conversion: the planned order becomes a production order
  6. Production: production begins

Creating an SAP planned order

A planned order contains various details from the material master and other SAP objects.

Key data fields:

  • Material number  
  • Plant  
  • Production quantity  
  • Start and end dates
  • MRP type  
  • Bill of materials (BOM)
  • Work plan  

Key SAP transactions for planned orders

TransactionDescription
MD11Create a planned order
MD12Change planned order
MD13View planned order
MD14Individual implementation
MD04Stock/Requirements Overview
MD02MRP run (single)

Planned order vs. production order – differences

CriterionPlanned orderProduction order
StatusNo obligationObligation
CreationAutomatic or manualManual or conversion
CostsNo actual costsCosts are recorded
ExecutionNo productionProduction is set to begin
FlexibilityHighLimited

The role of the planned order in production planning

In materials planning (MRP), the planned order plays a key role:

  • Ensuring material availability
  • Avoiding bottlenecks
  • Optimising stock levels
  • Supporting production planning 

Example:

A company has been awarded a major contract.

  • MRP automatically generates several planned orders
  • The planner adjusts the dates
  • The conversion to production orders takes place in stages

SAP S/4HANA: New features in planned orders

With SAP S/4HANA, the way we work with planned orders has also evolved.

Fiori apps instead of traditional transactions

Modern apps such as:

  • Monitor Material Coverage
  • Manage Planned Orders

offer:

  • Intuitive operation
  • Real-time data  
  • Improved visualisation 

Real-time-MRP (MRP Live)

Real-time MRP enables significantly faster planning thanks to HANA-based processing.

Advantages of the SAP planned order

A well-managed planned order offers numerous benefits:

✔ High flexibility

  • Flexible adjustment of quantities and deadlines 

✔ Transparency

  • Overview of future production requirements 

✔ Efficient planning

  • Optimal use of resources 

✔ Early detection of bottlenecks

  • Problems are identified before they arise 

Challenges in dealing with planned orders

Error Detection Icon

Overplanning

Too many planned orders can lead to:

  • unnecessary complexity
  • lead to planning chaos 
Central Data Source Icon

Unclear responsibilities

Who is authorised to:

  • change planned orders?
  • convert them?  
Database icon on a blue background

Data quality

Incorrect master data leads to:

  • incorrect planned orders
  • inefficient processes 

Best practices for using planned orders

  1. Clear scheduling strategy
  • Definition of planning parameters
  • Use of appropriate batch size methods 
  1. Regular MRP runs
  • Ensuring that plans are up to date
  1. Staff training
  • Improve understanding of planning logic 
  1. Use of S/4HANA features
  • Using Fiori apps
  • Using MRP Live

FAQ – Frequently asked questions about SAP planned orders

What is the difference between a planned order and a purchase requisition?

  • Planned order: in-house production
  • Purchase requisition: external procurement 

When is a planned order created automatically?

Whenever:

  • a requirement arises
  • there is no stock available
  • and the MRP type allows for this 

Can a planned order be executed directly?

No.
It must first be converted into a production order.

Who uses planned orders?

Typical roles:

  • Dispatchers  
  • Production planners  
  • Supply chain managers 

What data affects planned orders?

  • Material master  
  • Bill of materials  
  • Work plan  
  • MRP parameters  

Conclusion: Why the SAP planned order is indispensable

The SAP planned order is an essential tool for forward-looking production planning. It enables companies to identify requirements at an early stage, plan resources optimally and respond flexibly to changes.

In SAP S/4HANA in particular, modern technologies and real-time processing make planned orders even more powerful. Companies that manage their planned orders effectively and work with up-to-date master data benefit from:

  • more efficient processes
  • lower costs
  • greater delivery capacity