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Make-to-Stock – Process Manufacturing Based on Production Order

This scope item enables production planning in make-to-stock scenarios and quick reactions to incoming sales orders. The focus is on process manufacturing (supported through production orders).

The process starts with the creation of a demand forecast for semifinished goods represented by planned independent requirements (PIRs). Based on PIRs, Material Requirements Planning (MRP) creates a production plan for semifinished goods and explodes the entire bill of material structure. As a result, raw material demand is planned.

Production planners can analyze and change the planned-order-based production plan manually.

Raw material demand leads to purchase requisitions that trigger alternative procurement scenarios referenced in this scope item.

The production process itself is entirely covered via conversion of planned into production orders, order release, direct material issue or backflush, confirmation of operations and goods receipt posting. Order-based target and actual costs are created, ensuring fully integrated material and value streams.

Key Process Steps Covered

  • Process planned independent requirements
  • Perform material requirements planning and evaluation of stock requirement list
  • Process production orders: Create production order, material staging, order release, order confirmation, material movement postings for goods issue and goods receipt
  • Run scrap reports optionally after production


  • Trigger production execution with a production plan
  • Explode the bill of material automatically when running the material requirements planning
  • Improve usability with intuitive confirmation of production operations

Where is Make-to-Stock – Process Manufacturing Based on Production Order(2UG) being used?

This Scope item is used in the following way:

  • As a core function of Production Operations within Manufacturing Scope Item Group
  • As a core function of Production Planning within Manufacturing Scope Item Group

Process flow of Make-to-Stock – Process Manufacturing Based on Production Order (2UG)

Find below the process flow of the scope item Make-to-Stock – Process Manufacturing Based on Production Order as it is defined for release S4H-OP-2009.


Ref: Manufacturing of S4H-OP-2009

Best Practices related to S/4HANA

*1) Yearly Updates are released per September of each year
*2) The Quarterly updates are released per Februari, May, August and November
Details of future releases can be found in the SAP Roadmap section of each product. Go to SAP Roadmap Product Finder.

Knowledge Center Scheer Nederland | The Process Experts

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