SAP C_TS422_2022 SAP Certified Application Associate - SAP S/4HANA Production Planning and Manufacturing Exam Practice Test

You can limit the validity of a BOM by plant and by period. The plant determines the organizational area of validity for the BOM, and you can assign the same BOM to different or further plants if the prerequisites are met. The period of validity for a BOM is restricted by the valid-from date and the valid-to date in the BOM header and item, which determine when the BOM becomes effective and when it ends. References: Validity of Bills of Material, BOM Item Validity

A production version is a combination of a BOM and a routing that defines how a material is produced. For a production version to be valid and consistent, the following requirements must be fulfilled:

• The deletion flag must NOT be set for the BOM or the routing. The deletion flag indicates that the BOM or the routing is no longer used and should be archived. If the deletion flag is set, the production version cannot be used for production planning or execution.
• The lot size range must be within the lot size range of the assigned routing. The lot size range specifies the minimum and maximum order quantity for which the production version is valid. The lot size range of the production version must match or be smaller than the lot size range of the routing, otherwise the system will not find a suitable routing for the production order.
• The assigned routing and BOM must be valid in the entire validity period. The validity period defines the time frame for which the production version is valid. The validity period of the production version must be within or equal to the validity periods of the routing and the BOM, otherwise the system will not find a consistent BOM and routing combination for the production order. References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 113; [SAP Help Portal: Production Version].

Materials that have a negative quantity in a bill of material or in a recipe are those that are produced in addition to the main product during a production process. They are either sold or disposed of, and their costs are apportioned among the main product and the co-products. By-products are materials that have a low value compared to the main product and are usually not planned in advance. Co-products are materials that have a high value compared to the main product and are usually planned in advance. Waste products are materials that have no value and are discarded or recycled. References: Bill of Material (BOM), Test sap pp 2020 s4 hana - DAYPO

Before you create a BOM, you need to check if the material type of the header material is allowed in the BOM usage. The material type defines the attributes and functions of a material, such as whether it is a finished product, a raw material, or a trading good. The BOM usage defines the purpose and application of a BOM, such as production, engineering, or sales. Only certain combinations of material types and BOM usages are valid in SAP S/4HANA. For example, you cannot create a production BOM for a material type that is not relevant for production planning. References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 63; [SAP Help Portal: Material Type].

You can achieve planning only for specific resources in Advanced Planning (PP/DS) by using a resource group. A resource group is a collection of resources that share the same characteristics and can be used interchangeably for production. You can assign a resource group to a product or a production version, and then use the resource group as a selection criterion in the planning board or the product view. This way, you can restrict the planning to only those resources that belong to the resource group. References: SAP S/4HANA Manufacturing for Planning & Scheduling - Implementation Guide, page 25; [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 79.

When you create a product master in SAP S/4HANA, you need to enter values for mandatory fields such as product number, product type, base unit of measure, and description. The product type determines the category of the product, such as material, service, or article. The base unit of measure defines the unit in which you manage the product in all business transactions. The selection screen for views and plants are optional fields that allow you to choose which views and plants you want to maintain for the product master. References: Creating Products, Understanding the Concept of Master Data

The Find Slot scheduling strategy allows you to schedule an operation finitely, without removing other operations. It searches for a free slot in the resource’s capacity that can accommodate the operation’s duration and constraints. If no suitable slot is found, the operation is scheduled at the end of the resource’s capacity. This strategy is useful for inserting urgent orders or operations into an existing schedule without disrupting it too much12 References:

• SAP S/4HANA Manufacturing for planning and scheduling - SAP Community
• SAP S/4HANA Manufacturing for Planning & Scheduling - Implementation Guide

Make-to-stock production (10) is a planning strategy that supports the production of a finished good based on a forecast and without any reference to sales orders. This strategy is used when the finished good has a stable and predictable demand, and the company wants to maintain a certain level of safety stock to meet customer orders. If customers order more than the forecasted quantity, this does not affect the production program, as the system does not generate any additional planned orders or purchase requisitions for the finished good. Instead, the system reduces the planned independent requirements by the sales order quantity, and the excess demand is covered by the safety stock or the available stock. This strategy allows for a smooth and continuous production process, and avoids frequent changes in the production plan. References: Make-to-Stock Production | SAP Help Portal, Planning Strategies | SAP Help Portal, SAP S/4HANA Production Planning and Manufacturing Certification Guide, page 52.

You can select the following standard item categories inside a bill of material (BOM):

• Variable-size item: This item category is used for materials that have variable dimensions, such as pipes, wires, or fabrics. The system calculates the quantity of the variable-size item based on the formula and the dimensions entered in the BOM. You can also use the variable-size item to define a scrap percentage for the material.
• Non-stock item: This item category is used for materials that are not managed in inventory, such as consumables, services, or subcontracting items. The system does not create any reservations or stock movements for the non-stock item. You can use the non-stock item to trigger purchasing requisitions or purchase orders for the material. References: Bill of Material Item Category; Bills of Material in Production Planning

Material numbering is the process of assigning unique identifiers to materials in the system. Material numbering is defined at the client level, which means that the same material number can be used for different materials in different clients. However, within a client, the material number must be unique for each material. The material number can be either external or internal. External material numbers are entered manually by the user, while internal material numbers are generated automatically by the system. The maximum material number length is 40 characters for external numbers and 18 characters for internal numbers. The material number length can be customized in the configuration app Define Material Number Lengths1. The material number can also be formatted with prefixes, suffixes, and templates in the configuration app Define Material Number Formats2. References: Define Material Number Lengths | SAP Help Portal, Define Material Number Formats | SAP Help Portal

A material availability check can be triggered automatically for a production order by the following methods:

• By mass processing: You can use the mass processing function to execute material availability checks for multiple production orders at once. You can use the Manage Production Orders app or the transaction COHV to perform mass processing. You can define the selection criteria and the scope of check for the orders to be checked. The system updates the availability status and the committed quantities for the checked orders.
• By order release: You can configure the system to trigger a material availability check automatically when a production order is released. You can use the Customizing activity Define Checking Control to define the checking rule and the scope of check for the order release. The system updates the availability status and the committed quantities for the released order. References: Executing Material Availability Checks; [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 83.

Alternative item strategies are used to define how the system selects the alternative items in a BOM during the planning run or the order creation. The following alternative item strategies are available in SAP S/4HANA:

• Manual maintenance: The system does not select any alternative item automatically. You have to manually select the alternative item in the BOM or the order. This strategy is useful when you want to have full control over the alternative item selection and when the selection depends on factors that are not known to the system1
• 100% check: The system checks the availability of all alternative items and selects the one with the highest priority and sufficient stock. If none of the alternative items has enough stock, the system selects the one with the highest priority and the smallest shortage quantity. This strategy is useful when you want to optimize the material availability and reduce the procurement costs2
• First in First out (FIFO): The system selects the alternative item with the highest priority and the earliest availability date. If several alternative items have the same availability date, the system selects the one with the highest priority. This strategy is useful when you want to use the oldest stock first and avoid obsolescence3
• Simultaneous: The system selects all alternative items simultaneously and distributes the requirement quantity among them according to the usage probability. The usage probability is a percentage value that indicates how often an alternative item is used. This strategy is useful when you want to balance the demand and supply of multiple alternative items and when the usage probability is known.

References:

• Alternative Item Group - SAP Help Portal
• Alternative Item Group - SAP Help Portal
• Alternative Item Group - SAP Help Portal
• [Alternative Item Group - SAP Help Portal]

A resource network is a business object in PP/DS that defines the allowed directed connections between two or more resources. A directed connection means that the connection from Resource 1 to Resource 2 is not the same as the inverse connection from Resource 2 to Resource 1. You use this object to model existing production constraints more precisely, with the objective of creating a finite and technically feasible production schedule. Resource networks simplify the modeling of resource restrictions for consecutive operations or orders1

A resource selection is a business object in PP/DS that defines the criteria for selecting a suitable resource for an operation or an order. You use this object to specify the characteristics, attributes, and capacities of the resources that can be used for a particular production process. Resource selection allows you to optimize the resource utilization and reduce the setup times and costs2

A resource matrix is a business object in PP/DS that defines the relationships between different resources based on their characteristics and attributes. You use this object to determine the setup times and costs for changing from one resource to another. Resource matrix allows you to model the setup effort and expense more accurately and improve the production efficiency3

A resource hierarchy is a business object in PP/DS that defines the structure and sequence of resources that are used for a production process. You use this object to represent the logical and physical dependencies of the resources and to control the scheduling and sequencing of the operations or orders. Resource hierarchy allows you to model the production flow and capacity more realistically and ensure the technical feasibility of the production plan.

References:

• Resource Network | SAP Help Portal
• Resource Selection | SAP Help Portal
• Resource Matrix | SAP Help Portal
• [Resource Hierarchy | SAP Help Portal]

• Increase the capacity supply in a time-phased interval: You can use the capacity planning table or the capacity planning board to increase the available capacity of a resource by changing the shift sequence, the shift duration, or the number of individual capacities. You can also use the capacity leveling function to distribute the capacity requirements over a longer time horizon. This way, you can avoid capacity overloads and create a balanced capacity load.
• Determine a time period with available capacity on the planning board: You can use the planning board to visualize the capacity load and the capacity availability of a resource in a graphical Gantt chart. You can use the filter and zoom functions to focus on a specific time period and resource. You can also use the capacity evaluation function to display the capacity situation in a tabular or graphical form. This way, you can identify the time periods with available capacity and plan the operations accordingly.
• Form optimum sequence to reduce setup times: You can use the setup matrix or the setup group key to define the setup times and the setup categories for a resource. You can also use the setup optimization function to determine the optimum sequence of operations that minimizes the total setup time. This way, you can reduce the capacity consumption and increase the throughput of the resource. References: Identifying the Basic Principles and Tools of Capacity Planning; SAP Help Portal; [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 82.

The planning strategy Finite Scheduling with Reverse allows you to schedule production orders backwards from the requested delivery date, taking into account the available capacity and material constraints. To allow scheduling the past, you need to specify a negative offset time in the strategy profile. The offset time defines how far in the past the system can schedule the production order start date. For example, if you specify an offset time of -5 days, the system can schedule the production order start date up to 5 days before the current date. This can help you to avoid late deliveries and reduce lead times.

References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 97; [SAP Help Portal: Finite Scheduling with Reverse]

 To set up a make-to-order planning scenario for a finished material, you need to choose planning strategy 20 (Make-to-Order) and select the corresponding Individual/Collective indicator for the components in the bill of material. This way, you can control whether the components are procured individually or collectively for the sales orders. The following steps explain how to achieve this:

• In the material master record of the finished material, you need to select the MRP type PD (MRP) and the strategy group 20 (Make-to-Order) in the MRP 1 view. This means that the finished material is planned based on the sales order requirements and not on the forecast12.
• In the bill of material of the finished material, you need to select the Individual/Collective indicator for each component. This indicator determines whether the component is procured individually for each sales order or collectively for all independent requirements. For the component that should be procured for each sales order individually, you need to select the indicator 2 (Individual requirements only). For the component that should be procured jointly for all independent requirements, you need to select the indicator 1 (Collective requirements only)3 .
• When you create a sales order for the finished material, the system generates a sales order item and a planned independent requirement for the finished material. The planned independent requirement is used as a planning element in MRP and triggers the procurement of the components according to the Individual/Collective indicator. For the component with indicator 2, the system creates a dependent requirement that is linked to the sales order item. For the component with indicator 1, the system creates an independent requirement that is not linked to the sales order item .

References:

• 1: SAP Help Portal: Make-to-Order Production
• 2: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 2: Demand Management
• 3: SAP Help Portal: Individual/Collective Requirements
• : SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 3: Material Requirements Planning
• : SAP Help Portal: Requirements Planning
• : SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 4: Advanced Planning

You can create a production order using the following methods:

• Create by order release: You can create a production order by releasing a planned order in the material requirements planning (MRP) run. The system converts the planned order into a production order and assigns a production order number. You can use the Manage Production Orders app or the transaction CO40 to create production orders by order release.
• Create in Kanban process: You can create a production order in the Kanban process, which is a lean manufacturing method that uses pull signals to trigger production. The system creates a production order when a Kanban status changes from EMPTY to WAITING. You can use the Kanban Board app or the transaction PK13N to create production orders in the Kanban process. References: SAP Help Portal, Manage Production Orders in SAP S/4HANA Manufacturing

The difference between co-products and by-products is mainly in how they are accounted for in the production process. Co-products are products that have a relatively high salesvalue and are produced simultaneously from the same production process. By-products are products that have a relatively low sales value and are produced as a side effect of the main product. The following points explain the difference between them:

• Only co-products are identified by a special item category in the bill of material (BOM). This item category is L (Co-product) and it indicates that the component is a co-product that shares the joint costs of the production process with the main product and other co-products. By-products do not have a special item category in the BOM. They are usually entered with a negative quantity and a negative item category, such as N (By-product)12.
• Only co-products can be manufactured in isolation from the main product. This means that co-products can be produced independently from the main product if there is a demand for them. By-products cannot be manufactured in isolation from the main product. They are always produced as a result of the main product3 .
• Only co-products have a zero inventory valuation. This means that co-products do not have a price in the material master and their inventory value is calculated based on the apportionment of the joint costs of the production process. By-products have a fixed inventory valuation based on the price specified by the price control in the material master. Their inventory value does not depend on the production process12.
• Only co-products appear in the process or production order settlement rule. This means that co-products are settled to different receivers, such as sales orders, cost centers, or profitability segments, based on the apportionment structure defined in the material master of the leading co-product. By-products do not appear in the settlement rule. They are credited to the production order and reduce the total costs of the process12.

References:

• 1: SAP Help Portal: Co- and By-Products
• 2: SAP S/4HANA Production Planning and Manufacturing Certification Guide, Chapter 8: Product Compliance
• 3: SAP Co-Products and By-Products Tutorial - Free SAP PP Training - ERProof3
• : Co-Product and By-product in Production order | SAP Blogs2

You can exclude a material from the MRP run by using a specific material status or a specific MRP type. A material status is a user-defined indicator that can be assigned to a material master record to control the procurement and planning activities for the material. For example, you can define a material status that blocks the material from being planned by MRP. An MRP type is a parameter that defines how a material is planned by MRP. For example, you can use the MRP type ND (No Planning) to exclude the material from the MRP run.

References: [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 87; [SAP Help Portal: Material Status] and [SAP Help Portal: MRP Type].

 The work center that represents the production line for repetitive manufacturing is maintained in two places: the repetitive manufacturing profile and the production version. The repetitive manufacturing profile is a control parameter that defines the basic settingsfor repetitive manufacturing, such as the planning type, the backflushing method, the confirmation type, and the production line determination. The production version is a combination of a bill of material (BOM) and a routing or a rate routing that specifies how a material is produced. The production version also contains the work center that represents the production line for the material. The production version is assigned to the material master and is used in the planning and execution of repetitive manufacturing. References: Repetitive Manufacturing Profile | SAP Help Portal, Production Version | SAP Help Portal, Make-to-Stock Repetitive Manufacturing | SAP Help Portal.

The MRP planning file is a list of all materials relevant to the planning run. The system sets an entry in the planning file for a material when there is a change that affects the material requirements planning, such as changes to stock, requirements, receipts, or MRP data in the material master. The following processes lead to an entry in the MRP planning file:

• Changing the procurement type in the product master, which determines how the material is procured (internally or externally) and affects the MRP procedure and lot-sizing procedure.
• Changing the stock in inventory management, which changes the stock/requirements situation of the material and triggers a net requirements calculation.
• Changing the purchasing contract in materials management, which creates a purchase requisition as a receipt element and affects the availability of the material. References: Planning File, Planning File Entries for MRP Areas, SAP Exam C_TS422_1909 Topic 10 Question 10 Discussion

The system checks the master data selection settings during the creation of planned orders and production orders in the following places:

• In the bill of material (BOM), the system checks the selection ID, which determines which alternative BOM is selected for the material. The selection ID can be maintained in the material master or in the production version.
• In the routing, the system checks the selection ID, which determines which alternative routing is selected for the material. The selection ID can be maintained in the material master or in the production version.
• In the production version, the system checks the validity period, the lot size, and the selection profile, which determine whether the production version is valid and applicable for the material. The production version combines the BOM and the routing for a material and can be maintained in the material master or in the production version master data. References: SAP S/4HANA Manufacturing for Planning & Scheduling - Implementation Guide, page 16; [SAP S/4HANA Production Planning and Manufacturing Certification Guide], page 75.

 A production version is a master data object that links a bill of material (BOM) and a routing or a production process model (PPM) for a material. A production version is required for creating a production order in SAP S/4HANA, as it determines the components, operations, and resources that are needed for producing the material. You can create a production version manually or automatically using the CS_BOM_PRODVER_MIGRATION02 report1.

If you are trying to create a production order and no valid production version can be selected, it could be because of the following reasons:

• No bills of material (BOMs) are assigned to the production versions (A): A BOM is a master data object that defines the components and the quantities that are required for producing a material. A production version must have a valid BOM assigned to it, otherwise it cannot be used for creating a production order. You can assign a BOM to a production version on the MRP 4 tab page of the material master2.
• The order lot size is not within the validity range of a production version ©: A production version has a validity range that defines the period and the lot size interval in which it can be used for production planning. The validity range is maintained on the MRP 4 tab page of the material master2. If the order lot size (the quantity of the material to be produced) is not within the lot size interval of any production version, then no valid production version can be selected for creating a production order.

The other options are not valid reasons for not being able to select a production version for creating a production order:

• All production versions for the material are locked (B): A production version can have a status that indicates whether it is active or locked. A locked production version cannot be used for production planning, but it can still be selected for creating a production order. However, the system will issue a warning message that the production version is locked and ask for confirmation before proceeding with the order creation3.
• No production lines are assigned to the production versions (D): A production line is an organizational unit that represents a group of resources that are used for producing a material. A production line can be assigned to a production version on the MRP 4 tab page of the material master2. However, this assignment is optional and not mandatory for creating a production order. A production line can be used for grouping production versions for reporting or analysis purposes, but it does not affect the selection of a production version for creating a production order4.

References:

 A work center hierarchy is a business object in PP/DS that defines the structure and sequence of resources that are used for a production process. You use this object to represent the logical and physical dependencies of the resources and to control the scheduling and sequencing of the operations or orders. A work center hierarchy allows you to modelthe production flow and capacity more realistically and ensure the technical feasibility of the production plan1

A work center hierarchy can also be used to cumulate the available capacity and capacity requirements of the resources in capacity planning. You can cumulate the available capacities from subordinate work centers to a superior work center level in order to determine the total available capacity for the superior work center. This way, you can use a work center hierarchy as a group of alternative work centers that provide a cumulative available capacity for production23

References:

• Work center hierarchy | SAP Help Portal
• Work Center Hierarchy - SAP Help Portal
• Highlights for Manufacturing in SAP S/4HANA 2021 – Part 2: Production Planning, Engineering, Operations | SAP Blogs