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

In SAP S/4HANA, MRP determines whether to createplanned orders(for in-house production) orpurchase requisitions(for external procurement) based on specific master data settings in the material master. Theprocurement type(A), maintained in the MRP 2 view (field: ProcurementType), is a key determinant. For example, procurement type "E" (In-house production) triggers planned orders, while "F" (External procurement) generates purchase requisitions, and "X" (Both) allows MRP to decide based on additional settings like quotas.

Thematerial type(B), defined during material creation and linked to configuration (Logistics - General > Material Master > Basic Settings > Define Material Types), also influences this decision indirectly. For instance, material types like "FERT" (Finished Goods) are typically produced in-house, favoring planned orders, while "ROH" (Raw Materials) are procured externally, favoring purchase requisitions.MRP type(C) controls whether MRP runs (e.g., "PD" for MRP planning), but it does not directly determine the order type.MRP group(D) groups materials for planning parameters but does not directly dictate planned orders versus purchase requisitions.

In SAP S/4HANA Advanced Planning (PP/DS),peggingis a key concept that links supply (receipts) to demand (issues) across the production structure. It is defined as:

An evaluation that is ordered according to the bill-of-material structure of all related products and represents the relationship between the receipt and the issue elements(A): Pegging (visible in /SAPAPO/RRP3 or Product View) assigns receipt elements (e.g.,planned orders, stock) to issue elements (e.g., sales orders, dependent requirements) based on the BOM hierarchy. It follows the BOM structure (top-down or bottom-up) to ensure each demand is covered by a specific supply, maintaining traceability and sequence (e.g., fixed or dynamic pegging).

Option B (overstock situations) relates to stock analysis, not pegging’s core purpose. Option C (network structure) is inaccurate—pegging uses BOM, not a network, and focuses on assignment, not just coverage. Option D (shortages) is a result of planning, not pegging’s definition, which is about linking, not identifying gaps. This aligns with SAP’s PP/DS pegging documentation.

SAP’sclean coreapproach for S/4HANA Cloud Private Edition aims for a standardized, upgrade-friendly system. Recommended guiding principles include:

Establish an organizational structure, technical foundation, and transformation methodology for clean core(A): SAP advises setting up a governance structure, technical standards (e.g., extensibility via SAP BTP), and a methodology (e.g., SAP Activate) to ensure clean core adoption, minimizing customizations from the start.

Establish release management(C): Effective release management (e.g., via SAP Solution Manager or SAP Cloud ALM) ensures regular updates are applied smoothly, maintaining a clean core by avoiding conflicts with custom code and leveraging new standard features.

Define roles and responsibilities as part of a process transformation office(E): A dedicated transformation office with clear roles (e.g., process owners, IT architects) oversees clean core adherence, ensuring accountability for standardization and extensibility across teams.

Integrate clean core practices in the end-to-end value process chain(B) is a goal, not a distinct principle—it’s an outcome of other principles.Regular housekeeping tasks(D) (e.g., data archiving) supports operations but isn’t a core clean core principle, which focuses on design and governance. This is per SAP’s clean core strategy.

In SAP S/4HANA, a routing (transaction CA01/CA02) defines operation times for production, calculated using standard values and work center formulas. The time elements include:

Wait time(A): Defined in the routing (Operation Details, Standard Values), wait time is the duration an operation must wait after processing before moving to the next step (e.g., drying time). It’s part of interoperation times and affects scheduling.

Processing time(C): Also in the routing (Standard Values, e.g., Machine Time), this is the core time to perform the operation (e.g., machining), calculated via the work center’s processing formula (CR02, Capacity tab). It’s quantity-dependent and critical for lead time.

Setup time(E): Entered in the routing (Standard Values), setup time is the duration to prepare the work center (e.g., tool change), independent of quantity. It’s calculated using the setup formula in the work center and impacts total operation duration.

Float before production(B) is a scheduling margin in the material master (MRP 2 view) or production order, not an operation-specific time in the routing.Pick time(D) is not a standard routing term—it may relate to warehouse processes (e.g., WM), not production operations. This is per SAP’s routing structure.

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.

Engineering Change Management (ECM) in SAP S/4HANA (transaction CC01/CC02) manages changes to objects like BOMs, routings, and materials with a structured process:

To save multiple changes for an object(C): ECM allows multiple changes (e.g., to a BOM’s components) to be grouped under one change number (field: Change Number in CS01). These changes are saved and applied together on a specified date (Valid From), ensuring coordinated updates across objects.

To monitor document object changes(D): ECM tracks changes to objects (e.g., materials, BOMs) linked to a change number, providing an audit trail (transaction CC03, History tab). This monitors who changed what and when, supporting compliance and traceability.

To monitor document table changes(A) is vague—“document” likely means BOM or routing, but ECM focuses on object changes, not table-level monitoring (e.g., database logs).To enable integration into a sales order(B) is incorrect—ECM integrates with production or procurement, not directly with sales orders (VA01). This is per SAP’s ECM functionality.

In SAP S/4HANA, the validity of a bill of material (BOM) (transaction CS01/CS02) can be restricted as follows:

By plant(B): BOMs are plant-specific by default (field: Plant in CS01). A BOM created for one plant (e.g., 0001) is not valid in another (e.g., 0002) unless copied or extended (CS07), limiting its applicability to the specified plant.

By period(C): The BOM header (CS02) includes "Valid From" and "Valid To" dates, restricting its use to a specific time range. MRP and production orders only select BOMs valid on the required date, allowing versioning or phase-outs (e.g., engineering changes via ECM).

By material type(A) influences which materials can be included in a BOM (e.g., FERT for finished goods), but it doesn’t limit the BOM’s validity—it’s a material attribute.By material status(D) (material master, Basic Data) can block a material from use, but it affects the material, not the BOM’s validity directly. This aligns with SAP’s BOM management rules.

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.

Choosing a make-to-order (MTO) planning strategy (e.g., 20) in SAP S/4HANA discrete manufacturing has these impacts:

Net requirements calculation is carried out for every sales order individually(A): In MTO (material master, MRP 3 view, Strategy: 20), MRP (MD02) calculates requirements separately for each sales order (VA01), creating individual dependent requirements and planned orders tied to the sales order number, ensuring traceability and isolation from other demands.

Production orders are created with sales order reference(B): When converting planned orders (CO41) or creating orders directly (CO01), the system links them to the sales order (field: Sales Order in CO01), enabling cost tracking and stock assignment to that specific order.

Sales orders have to be ATP-confirmed (available-to-promise) to be saved(E): In MTO, the system performs an ATP check (configured in OVZ9) during sales order entry to confirm component availability or procurement lead times. If not confirmed, the order cannot be saved unless availability is bypassed (based on settings), ensuring feasibility.

Storage location MRP areas(C) are optional for MTO stock segregation but not required—standard MTO uses sales order stock without MRP areas unless explicitly configured.Reduction on delivery(D) applies to stock reduction (VL01N), but requirements reduction occurs earlier (e.g., at goods issue), not strictly at delivery. This is per SAP’s MTO process documentation.

To enable capacity availability checks for production orders in SAP S/4HANA, specific settings ensure the system evaluates work center capacity:

The Relevant for Finite Scheduling indicator must be set(A): In the work center (transaction CR02, Capacity tab, field: Relevant to Finite Scheduling), this indicator must be activated. It ensures the system considers capacity limits during scheduling and availability checks, treating the work center as finite rather than infinite.

An overall profile must be assigned in the checking control(D): In Customizing (Production > Shop Floor Control > Operations > Capacity Planning > Define Checking Control), the checking control links the order type and plant to an overall profile (e.g., SAPSFCG013). This profile (defined in Capacity Planning Customizing) specifies how capacity is checked(e.g., scope, tolerances) during order release or creation.

The scope of check(B) is part of the overall profile, not a separate setting in this context.A checking rule in work centers(C) applies to material availability or ATP checks, not capacity checks, which rely on the capacity profile and finite scheduling settings. This is detailed in SAP’s capacity planning documentation.

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.

Creating a material master (referred to here as a "product master") in SAP S/4HANA Cloud Private Edition (transaction MM01) requires mandatory fields to establish the material’s identity and usage:

Base unit of measure(A): This field (Basic Data 1 view, field: Base Unit of Measure) is mandatory and defines the primary unit (e.g., "PC," "KG") for stockkeeping, procurement, and production. Without it, the system cannot process quantities, making it a required input during creation.

Industry sector(B): Selected on the initial MM01 screen (field: Industry Sector), this determines the material’s business context (e.g., "M" for Mechanical Engineering) and influences the available views and field layouts. It’s mandatory to proceed with material creation.

Selection screen for views(C) is a step in MM01 where you choose views (e.g., MRP, Purchasing), but it’s not "information" entered—it’s a navigation choice.Product type(D) is likely a misnomer for "Material Type" (e.g., FERT, ROH), which is required on the initial screen, but the question’s phrasing aligns with SAP’s term "Material Type," not "Product Type." A and B are the clearest matches per SAP’s material creation process.

In SAP S/4HANA repetitive manufacturing, aline hierarchy(transaction LDM1) organizes production lines for planning and execution:

A production line with more than one work center(A): A line hierarchy represents a complex production line comprising multiple work centers (defined in CR01/CR02) linked in a hierarchical structure. For example, a main line (top node) might include sub-lines or work centers (e.g., assembly, testing), allowing detailed capacity planning and quantity assignment in MF50 or PP/DS.

Alternative sequence in the routing(B) (CA21, Alternative Sequence) defines optional operation paths, not a line hierarchy.Parallel sequence in the routing(C) (Parallel Sequence) splits operations concurrently, unrelated to line hierarchy structure.Prioritized alternative work centers(D) is managed via production versions or PP/DS mode selection, not line hierarchies, which focus on physical line organization. This is per SAP’s REM line hierarchy definition.

In SAP S/4HANA repetitive manufacturing,reporting point confirmation(e.g., via transaction MFBF) tracks progress at specific milestones. Prerequisites include:

Activating the reporting point backflush in the work centers(B): The work center (transaction CR02, Basic Data tab, field: Backflush) must have backflushing activated (e.g., "Reporting Point Backflush" indicator). This enables goods movements (e.g., component consumption) at reporting points during confirmation, a key REM feature.

Defining the operations as reporting points using the control key(D): In the rate routing (CA21), operations designated as reporting points require a control key (field: Control Key) with the "Reporting Point" indicator checked (configured in OPJ8). This marks the operation as a confirmation milestone (e.g., RP01 control key).

Order-dependent parameters(A) apply to discrete manufacturing (OPL8), not REM, where the REM profile (OSP2) governs backflushing, not reporting points specifically.Defining work centers in the routing(C) is standard but insufficient without the control key specifying reporting points. This is per SAP’s REM confirmation process.

In SAP S/4HANA repetitive manufacturing, confirming a finished product (e.g., via transaction MFBF) triggers default actions based on the REM profile (Customizing, OSP2):

Post the goods receipt for the finished product(A): When saving a confirmation (MFBF,Backflush tab), the system posts a goods receipt (movement type 101) for the finished product into stock (e.g., unrestricted use), assuming backflushing is active in the REM profile (field: Backflush Mandatory).

Reduce run schedule quantities(B): The confirmed quantity reduces the openrun schedule quantities(planned orders in MD04 or MF50), aligning the planned production with actual output to prevent overproduction.

Update statistics for the Business Information Warehouse(D): Confirmation data (e.g., quantity, time) updates statistical tables (e.g., S031, S032) for reporting in SAP BW or embedded analytics, providing insights into production performance (enabled by default in standard settings).

Post production costs to the planned order(C) is incorrect—costs are posted to aproduct cost collector(KKF6N) in REM, not planned orders, based on the REM profile’s costing settings.Create associated capacity requirements(E) occurs during planning (e.g., MRP), not confirmation—capacity is consumed, not created, at this stage. This is per SAP’s REM confirmation process.

SAP S/4HANA offers automation options to streamline production order processing:

You can use trigger points to automatically create rework orders via confirmations(A): Trigger points (configured in routing via CA02, Extras > Trigger Points) are events linked to operations. For example, a trigger point can be set to create a rework order (order type defined in Customizing) automatically when a confirmation (e.g., CO11N) indicates a quality issue, enhancing process efficiency.

You can use mass processing to set production orders to technically complete(B): Transaction COHV (Mass Processing of Production Orders) allows users to select multiple orders and execute the "Technically Complete" function (TECO), automating status updates without manual intervention per order.

The production scheduling profile(C) (Customizing: Production > Shop Floor Control > Master Data > Define Production Scheduling Profile) controls scheduling and confirmation settings but cannot automatically set orders to "Technically Complete"—this requires manual or mass action.Mass processing to read PP master data(D) is not a standard function—COHV updates order data, not reads master data for automation. This is per SAP’s production automation features.

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.

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, changing the material type (transaction MMAM) is restricted if stocks, reservations, or purchasing documents exist, but it’s allowed under specific conditions:

The quantity and value updates are the same(A): The old and new material types must have identical quantity and value update settings in their valuation areas (configured in OMS2, Material Type Customizing). For example, both must update quantity and value (e.g., "FERT" to "HALB"), or neither (e.g., "NLAG" to "DIEN"). If these differ, the change is blocked due to inconsistencies in stock valuation.

The same base unit of measure is used(C): The base unit (material master, Basic Data 1 view) must remain unchanged between material types. Changing it (e.g., from "PC" to "KG") would invalidate existing stock or document quantities, so the system requires consistency to allow the type change.

The same batch management level(B) (e.g., plant or material level, configured in OMCT) is not a strict requirement—batch settings can differ as long as other conditions are met.The same account category(D) (e.g., General Ledger account determination) influences posting but isn’t a prerequisite—account assignment can be adjusted post-change. This is per SAP’s material type change rules.

In SAP S/4HANA, when a raw material batch has a quality deviation and has been used in production, you can trace its impact on finished goods using batch management tools:

Use the Batch Information Cockpit(B): The Batch Information Cockpit (transaction BMBC) provides a centralized view of batch data, including where-used information. By entering the raw material batch number, you can trace its usage through production orders (e.g., CO03) to identify all affected finished goods batches in stock (e.g., via the "Batch Usage" tab).

Use the batch where-used list(C): The batch where-used list (transaction MB56 or embedded in MSC2N, "Batch Usage" function) tracks a batch’s consumption across production orders or material movements (e.g., goods issue 261). It shows the hierarchy from the raw material batch to finished goods batches, pinpointing affected stock (e.g., in MMBE).

Batch determination(A) (e.g., in COB1) is for selecting batches during production or sales, not tracing past usage.Batch derivation(D) (Customizing, Logistics - General > Batch Management > Derivation) transfers batch attributes from raw to finished goods but doesn’t identify affected stock retrospectively—it’s a forward process. This is per SAP’s batch traceability features.

In SAP S/4HANA, the MRP planning file (table MDVM, visible via MD05) tracks changes that trigger MRP to re-evaluate a material’s planning situation. Entries are created when:

Changing the procurement type in the product master(C): The procurement type (material master, MRP 2 view, field: Procurement Type) determines whether a material is produced in-house ("E"), procured externally ("F"), or both ("X"). Changing it (e.g., via MM02) affects how MRP generates planned orders or purchase requisitions, so an entry is added to the planning file (e.g., NETCH or NETPL indicator) to prompt recalculation.

Changing the stock in inventory management(D): Any stock change (e.g., goods receipt via MIGO, goods issue via MB1A) updates the available stock (MD04). This triggers an MRP planning file entry because it alters the net requirements calculation, requiring MRP (MD01/MD02) to reassess supply versus demand.

Changing the delivery address in transportation management(A) affects logistics execution (e.g., shipment documents), not MRP planning directly—no entry is created.Changing the storage bin in warehouse management(B) (e.g., via LT10) is a WM-level movement that doesn’t impact MRP unless stock quantity changes, which falls under (D). This is per SAP’s MRP planning file logic.