SAP Production Order
The SAP production order brings together all the information relating to the manufacture of a product and, in SAP S/4HANA, forms part of integrated end-to-end processes such as Plan to Produce.
What is a production order in SAP?
In the SAP system, a production order specifies which material is to be produced, in what quantity, by what date and using which resources. It also contains information on work steps, required components and cost allocation.
The production order thus forms the basis for operational production in the SAP PP (Production Planning) module and in the end-to-end ‘Plan to Produce’ process.
Typical contents of a production order
| Element | Description |
| Material | The head material to be produced |
| Volume | Planned production volume |
| Dates | Start and end dates of production |
| Bill of Materials (BOM) | Components and materials required |
| Work plan | Production stages and workstations |
| Costs | Planned and actual production costs |
The production order therefore controls the entire in-house production process – from planning right through to the receipt of the finished product.
What role does the production order play in the SAP PP module?
The SAP PP (Production Planning) module is designed to map all of a company’s production processes – from demand planning through production control to production confirmation.
In current SAP terminology, however, this sequence is viewed more as a continuous end-to-end process, specifically as ‘Plan to Produce’. The production order is a central object that links the various process steps together.
The production order fulfils several key functions in this context:
- Management of production processes
- Resource and capacity planning
- Materials procurement from the warehouse
- Recording of production times and quantities
- Cost control and post-production costing
Without production orders, structured production planning in SAP would not be possible.
How is a production order created?
In practice, a production order is often created from a planned order that was generated as part of material requirements planning (MRP).
The typical procedure is as follows:
- A requirement arises, e.g. from a customer order or a planned primary requirement
- MRP run: The system calculates material requirements
- A planned order is created
- Conversion to a production order
- Release of the production order
- Production is carried out
- Goods receipt of the finished product
This process links various SAP modules such as:
- MM (Materials Management) – in the context of procurement and materials provision
- PP (Production Planning) – in the context of plan-to-produce
- CO (Controlling) – in the context of cost accounting and production controlling
- SD (Sales and Distribution) – in the context of order-to-cash for make-to-order production
- WM/eWM (Warehouse Management/Extended Warehouse Management) – in the context of warehouse and material flow processes
This means that the production order is not merely an object within a single module, but part of an integrated end-to-end process.
Structure of an SAP production order
A production order consists of several data sections.
1. Order header
The order header contains general information about the order.
Examples:
- Order number
- Material
- Plant
- Production quantity
- Deadlines
- Order type
2. Components
This section lists all the materials from the bill of materials (BOM) that are required for production.
Example:
| Material | Amount | Unit of measurement | Place of requirement |
| Steel plate | 2 | Piece | Raw materials warehouse |
| Screws | 8 | Piece | Small parts store |
| Motor | 1 | Piece | Component warehouse |
These materials are subsequently removed from the warehouse via goods issue.
3. Work processes
The work operations are taken from the routing and define the individual production steps.
Typical processes:
- Milling
- Assembly
- Quality control
Each transaction contains information on:
- Workstation / Machine
- Processing time
- Staffing requirements
- Operations volume
4. Costs and Calculations
The production order also serves as a cost object in Controlling.
It enables:
- Estimation of production costs
- Recording of actual costs
- Variance analysis
This enables companies to determine how cost-effectively a product has been manufactured.
Key SAP transactions for production orders
In the standard SAP GUI, production orders are managed using various transactions.
| Transaction | Function |
| CO01 | Create a production order |
| CO02 | Amend production order |
| CO03 | View production order |
| COHV | Processing production orders in Basse |
| CO11N | Confirm work activities |
| CO15 | Confirm production order |
| COOIS | Selecting and analysing production orders* |
*The COOIS transaction enables production planners to quickly gain an overview of production orders based on specific selection criteria. For example, it is possible to display all orders for a particular plant with a specific status and within a defined time period (e.g. displaying all orders for Plant 1010 with status TABG for the period 1 March 2026 to today).
All of the transactions mentioned above form part of the day-to-day working environment of production planners. In SAP S/4HANA, they are increasingly being supplemented by SAP Fiori apps, which present individual process steps in the end-to-end ‘Plan-to-Produce’ process in a more modern and user-friendly way.
The life cycle of a production order
A production order passes through several statuses during the production process.
- Appendix
The order is created or converted from a planned order.
- Scheduling
The system calculates the start and end dates for each individual task.
- Approval
The order may only be put into production once it has been approved.
- Material withdrawal
The required materials are sent to the goods dispatch area
- Feedback
Production times, quantities and scrap are reported back.
- Goods Received
The finished product in the goods issue area is posted to the warehouse.
- Technical degree
The order is completed and can then be archived.
The life cycle shows that the production order links several process steps together – from planning through to execution and the evaluation of production.
Production order in SAP S/4HANA
SAP S/4HANA has modernised many functions in the area of production planning. There is a greater focus on integrated processes, real-time data and role-based applications.
Key changes:
Fiori apps for production orders
Many processes can be carried out using modern SAP Fiori apps, for example:
- Manage Production Orders
- Release Production Orders
- Confirm Production Operations
These apps offer:
- intuitive user interfaces
- real-time analytics
- faster navigation
Real-time analytics powered by HANA
Thanks to the SAP HANA in-memory database, production data can be analysed in real time. This enables bottlenecks or production problems to be identified more quickly.
Integration with PP/DS
In SAP S/4HANA, the production order is often combined with PP/DS (Production Planning and Detailed Scheduling).
The following are possible:
- critical components are planned in detail
- production sequences are optimised
- capacities are planned more accurately
A planned order can subsequently be converted into a production order. Depending on the system landscape and process design, this conversion and processing can take place both in SAP S/4HANA and in conjunction with PP/DS. Changes to relevant planning or order data – such as dates or quantities – are synchronised between the systems or components involved.
Best practices for production orders
To ensure a smooth production process, companies should bear the following points in mind:
Accurate master data
- Material Master
- Bill of Materials
- Work Plan
Clear order types
Different production methods require their own order types:
- Mass production
- Custom manufacturing
- Project-based manufacturing
Regular feedback
Feedback on production volumes and times is important for:
- Capacity planning
- Cost analysis
- Production controlling
They ensure that the plan-to-produce process remains transparent and that deviations can be identified at an early stage.
FAQ on SAP Production Orders
What is the difference between a planned order and a production order?
A planned order is a planning element in material requirements planning. It only becomes an executable production order once it has been converted into a production order.
What data is automatically transferred to the production order?
When a production order is created, data is automatically transferred from various master records:
- Bill of Materials (BOM)
- Work plan
- Material master
- Costing data
In which SAP module is the production order used?
The production order is primarily part of the SAP PP – Production Planning module. However, in the modern SAP view, it is also an integral part of the end-to-end ‘Plan-to-Produce’ process.
He works closely with the following modules and process areas:
- MM (Materials Management / Materials Provision)
- CO (Controlling / Production Controlling)
- QM (Quality Management / Quality Inspection)
- SD (Sales and Distribution / Order-to-Cash for make-to-order production)
- WM/EWM (Warehouse Management / Warehouse and Materials Flow Processes)
Fazit
The SAP production order is the central element for managing production in SAP. It brings together all the relevant information for manufacturing a product – from material requirements and work operations right through to cost control.
In SAP S/4HANA in particular, companies benefit from enhanced capabilities such as Fiori apps, real-time analytics and integrated production planning with PP/DS.
At the same time, the production order should not be viewed merely as an object within the SAP PP module, but as a key component of end-to-end processes such as Plan-to-Produce. It thus forms the basis for transparent, efficient and digitally controlled production.
