The purpose of this document is to explain the basics of MRP area, steps involved in activating MRP area and to use it in different possible ways.
As we know MRP runs at plant level (centralized), but as per business need we may have to plan MRP for individual & independent planning areas (decentralized). This can be achieved by activating MRP areas. These MRP areas are fully configurable organizational units within ECC where MRP can be run individually. So we can broadly classify running MRP in 2 major ways.
You can define MRP areas within a plant and carry out MRP specifically for that particular area, for example in above illustration, for MRP area M0001 can be planned independently without running MRP for plant FP01.
In each MRP area you can control staging and procurement of parts that are produced in house or externally. All MRP procedures are supported by MRP areas and one can display the result of MRP run for each MRP area.
MRP Area (definition):
As per SAP, “MRP Area represents an organizational unit for which material requirements planning is carried out independently”
MRP Area is functionality for special planning process that enables you to carry out planning not only at plant level but also at different planning levels (eg, storage location & sub-contractors). There are 3 types of MRP areas in SAP
Plant MRP area:
MRP area can be created at plant level. On doing so, system combines all its storage locations and stock with subcontractors under that MRP area. When you define MRP areas for storage locations and for subcontractors and assign material to newly created MRP areas with in plant then the plant MRP area gets reduced by exactly the numbers of subcontractors and storage locations. This is because they will now be planned separately in new MRP areas.
MRP area for storage location:
MRP area can also be defined for storage location or multiple storage locations. Material requirements for this storage location are then planned separately from the rest of the plant. Important point to note here is that you can assign 1 storage location to only 1 MRP area but you can have multiple storage locations under single MRP area. It’s a N to 1 relationship.
MRP Areas for Subcontractors:
You can also define an MRP area for each subcontractor. Important point to note here is that a subcontractor can be assigned to only one MRP area in a plant. An MRP area of the subcontractor type can only contain one subcontractor. It’s a 1 to 1 relationship.
How to setup MRP area in SAP
There are 2 aspects of setting up MRP area. First one is to activate it in customizing and second part it to set up master data (i.e. adding materials to that particular MRP area in material master).
MRP with MRP area is not operational until you assign MRP area to a particular material in material master or in order words create a MRP area segment. If you have not assigned a material to an MRP area, that is, you have not created an MRP area segment in the material master, the material will continue to be planned in the plant MRP area only.
Step 1 – Converting Planning file entries
Path: SPRO > Production > Material Requirement Planning > Master Data > MRP Areas > Convert Planning file entries for MRP areas – OM0F or SE38 program RMDBVM00
When we convert planning file entries for MRP area, system creates plant MRP area for each plant. Following entries from below tables are converted. Planning file entries are maintained in MRP file which are converted to MRP area file in below tables.
Planning file entries in MDVM are converted to DBVM
Planning file entries in MDVL are converted to DBVL
Planning file entries in KDVM are converted to KBVM
Planning file entries in KDVL are converted to KBVL
If you are running converting planning files for the first time then system will automatically create plant MRP areas. These new entries can be seen in OMIZ under plant MRP area with area type “01”.
IMP note: After the conversion, contents of MDVM/MDVL/ KDVM/KDVL are deleted and entries are created in DBVM/ DBVL/ KBVM/ KBVL.
Step 2 – Define MRP area in SPRO – OMIZ
Path: SPRO > Production > Material Requirement Planning > Master Data > MRP Areas > Define MRP areas
MRP area has 3 types (01, 02 & 03) and system will allow you to have MRP areas in below types only (Plant, Storage location or Sub Contractor)