Production Orders in SAP®-ERP have their very own lifecycle, like every other transaction data element as well. In this post, I will give you an overview of the standard lifecycle of this data type. I refer to the term of production order in this text but everything said is also valid for the process orders.
You can create a production order from scratch, or you convert a planned order from MRP-Run. The second way is more often used and can be automated. In the status Created (CRTD) you can perform availability checks and detailed scheduling. But, you need to release the order to be able to process it.
The status Released (REL) shows that the order has left the planning phase and is now ready for execution. Once you have released it, you are able to perform the following steps in SAP®-ERP:
- Post confirmations for the order.
- Print the shop floor papers for the order.
- Post Goods movements for the order.
This status is one of the most important in the production order lifecycle.
If you want to show that a production order is finished from a logistical point of view, you set the status technically complete (TECO). In addition to the state, the following procedures run in the background:
- the remaining order quantity is not relevant for MRP-run,
- open reservations are deleted,
- capacity requirements are eliminated and
- all purchase requisitions connected to the order are closed.
However, you can still make postings like confirmations or goods movements for the order.
The status Closed (CLSD) indicates that the order is finished from logistics as well as from a financial point of view. To set this status, the element must meet the following prerequisites:
- status Released or Technically completed,
- balance of 0,
- no open inspections,
- no open purchase requisitions and
- no change records from confirmation processes.
As a result of this status, no more costs can be posted to this order, and it can’t be changed anymore.
Mark for deletion
Once this step of the production order lifecycle is reached the element is excluded from most standard transactions by default. This phase is divided into two different SAP®-ERP status. The first status is the deletion flag and the second one is the deletion indicator. The difference is that you can undo the deletion flag whereas the deletion indicator is fixed. As mentioned this status is a powerful filter in many SAP®-ERP transactions. By setting the deletion flag consequently, you can improve the performance of the production order info system or the controlling month end procedure. A right timescale to apply the deletion flag might be three months after the last goods receipt. Whereas you might want to wait until your financial year has been closed and testified to set the deletion indicator.
Finally, the last step in the production order lifecycle is the archiving process. The archiving program writes the data to archive files and deletes it from the database if it has been archived successfully.
Summary of the production order lifecycle
It is vital for the maintenance and performance of your
SAP®-ERP-System that you have a working production order lifecycle. Therefore it is essential that you include the later steps in your implementation plans as well. Because what usually happens is that you implement the creation and release of production orders but forget about the closing and deletion. After some years you end up with thousands of data elements in your database and have to fight a decreasing performance. So, if you plan to implement production orders, design the archiving process as well!