---
title: "Production Planning in SAP ERP and SAP S/4HANA: A Comparison of 17 Features"
description: Take a look at the differences in production planning in an SAP ERP system and an SAP S/4HANA system. Become familiar with PP with SAP!
image: https://blog.sap-press.com/hubfs/How%20Does%20Production%20Planning%20Differ%20Between%20SAP%20ERP%20and%20SAP%20S4HANA.png
---

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# Production Planning in SAP ERP and SAP S/4HANA: A Comparison of 17 Features

![SAP PRESS](https://blog.sap-press.com/hubfs/Twitter_profile_pic.svg)  by [SAP PRESS](https://blog.sap-press.com/author/sap-press)

With the advent of SAP S/4HANA, a number of changes were made to production planning features when compared to SAP ERP.

 

In this blog post, we’ll outline a selective comparison of the features and functionalities available in [SAP ERP](https://learning.sap-press.com/what-is-sap/#sap-erp) with those in [SAP S/4HANA](https://learning.sap-press.com/sap-s4hana-overview-benefits). It will also highlight some of the simplifications available in SAP S/4HANA.

 

## PP/DS

In SAP ERP, PP/DS was a component of SAP Advanced Planning and Optimization that interfaced with SAP ERP via middleware. In SAP S/4HANA, PP/DS is embedded and accessible via an additional license cost.

 

[Learn more about activating PP/DS in SAP S/4HANA here](https://blog.sap-press.com/how-to-activate-ppds-in-sap-s4hana).

 

## Production Engineering and Operations

In SAP ERP, production engineering and operations functionality did not exist. SAP S/4HANA provides this embedded in the system, available via additional license cost.

 

## pMRP

Predictive MRP (pMRP) was not available in SAP ERP, with long-term planning functionality as the closest option. SAP S/4HANA provides both long-term planning and pMRP as simulative tools.

 

[Learn how to create a predictive MRP scenario in this post](https://blog.sap-press.com/creating-a-predictive-mrp-simulation-with-sap-s4hana).

 

## MRP Live

MRP Live did not exist in SAP ERP. It is available in SAP S/4HANA. MRP Live offers far more options for selecting relevant parameters, such as multiple plants, materials, and MRP controllers. It also handles MRP materials in addition to MRP materials in a single transactions.

 

[See how MRP Live compares to classic MRP in this post](https://blog.sap-press.com/what-are-the-differences-between-mrp-live-and-classic-mrp).

 

## Externally Procured Material

In SAP ERP, options were available to create planned orders and purchase requisitions. In SAP S/4HANA, only purchase requisitions are created during the MRP run (via an MRP Live transaction) for material marked for external procurement.

 

## Delivery Schedule Lines for Externally Procured Materials

SAP ERP offered an option to choose creation of delivery schedule lines for externally procured materials. SAP S/4HANA automatically creates delivery schedule lines during the MRP run via the MRP Live transaction.

 

## Production Version

In SAP ERP, production version was optional for discrete manufacturing, while mandatory for process and repetitive manufacturing. Selection methods were based on validity date, lot size, and explosion date. No mass creation functionality for production version existed.

 

In SAP S/4HANA, production version is mandatory for all production types. A selection method is not available, and a production version with the latest Valid From date is considered. For mass creation of production versions, you can access two reports via Transaction SM38: CS\_BOM\_PRODVER\_MIGRATION and CS\_BOM\_PRODVER\_MIGRATION02.

 

## Process Management

SAP ERP had[ABAP](https://learning.sap-press.com/abap)list-based process instructions and browser-based process integration sheets. In SAP S/4HANA, your options are browser-based PI sheets and XSteps.

 

## Quota Arrangement

SAP ERP gave you the option to choose quota arrangement usage. In SAP S/4HANA, quota arrangement is always considered by the MRP Live transaction during the MRP run.

 

## REM

For REM, SAP ERP provided the following options to choose from: action control, fair-share rule, push distribution, and deployment horizon. In SAP S/4HANA, all are now considered by default and hence not available.

 

## Planning File Entry

Net change planning in the planning horizon was available in SAP ERP. For SAP S/4HANA, net change planning in the planning horizon is unavailable because MRP Live always determines the shortages and requirements of all materials in the scope of planning.

 

## BOM Header Quantity Range

In SAP ERP, this functionality enabled a user to defines a quantity range for which the BOM is applicable. This is not available in SAP S/4HANA.

 

## MRP Area for Storage Location

This functionality was available for SAP ERP, and unavailable for SAP S/4HANA, although it can be activated.

 

## Consumption Mode in MRP

The following consumption modes were available in SAP ERP: backward consumption only, backward/forward consumption, forward consumption only, forward/backward consumption. In SAP S/4HANA, these four options continue to exist, along with a fifth mode called period-based consumption. In this method, sales orders, dependent requirements, or material reservations consume planning independent requirements (PIRs) that lie within the consumption period of the PIRs.

 

## Monitoring Internal and External Requirements

For users of SAP ERP, these functionalities were not available. A user could only check the material situation in Transaction MD04 and then run MRP to attend to the requirements. In SAP S/4HANA, the Monitor Material Coverage, Monitor Internal Requirements, and Monitor External Requirements [SAP Fiori apps](https://learning.sap-press.com/sap-fiori-overview) provide far greater visibility into the internal and external requirement situations.

 

## Analyzing PIR Quality

This functionality was not available in SAP ERP. In SAP S/4HANA, a planner can analyze how accurately the forecasted quantities in the PIRs for materials match the quantities that were actually delivered to customers. The data can be analyzed for monthly periods in the past.

 

## Excess Component Consumption, Material Scrap, and Component Scrap

These functionalities were not available in SAP ERP. In SAP S/4HANA, these apps provide a comparison of the expected scrap percentage defined in the master data and the actual excess consumption or scrap recorded in the production process.

 

## Conclusion

The shift from SAP ERP to SAP S/4HANA introduces significant changes in production planning, ranging from embedded PP/DS and pMRP to new apps for monitoring and analysis. While some functionalities have been streamlined or removed, others have been enhanced or newly introduced to provide greater visibility, efficiency, and predictive capabilities.

 

For organizations planning their transition, it’s important to understand not only what has changed, but also how these updates align with evolving business needs. By leveraging the advanced planning tools in SAP S/4HANA, companies can move toward more agile, data-driven production planning processes that better support modern supply chain demands.

 

![How Does PP Differ Between SAP ERP and SAP S/4HANA?](https://blog.sap-press.com/hs-fs/hubfs/pp_features_in_erp_and_s4hana_infographic.png?width=1500&height=3225&name=pp_features_in_erp_and_s4hana_infographic.png)

[![Want to save this infographic? Click here to download!](https://no-cache.hubspot.com/cta/default/5707200/c641365e-d70f-4911-a743-32de0d816de2.png)](https://cta-redirect.hubspot.com/cta/redirect/5707200/c641365e-d70f-4911-a743-32de0d816de2)

 

[Dive into logistics SAP S/4HANA with this learning journey.](https://learning.sap-press.com/learning-journey/sap-fico)

 

[Learn more about logistics in SAP S/4HANA on this page](https://learning.sap-press.com/sap-s4hana-logistics).

 

## Learn PP in Our Rheinwerk Course!

With a look at both business processes and system configuration, this course has end-to-end coverage of PP! Understand the data, functionalities, and settings that support your production planning workflows in SAP S/4HANA. Dive into demand management, MRP, capacity requirements planning, shop floor control, and reporting. Examine manufacturing by industry, and look ahead to new innovations in SAP S/4HANA! Get access to course recordings by clicking the banner below.

 

[![Production Planning Course](https://blog.sap-press.com/hs-fs/hubfs/blog_courses_09_PP_Blog_on_demand.png?width=597&height=199&name=blog_courses_09_PP_Blog_on_demand.png)](https://www.sap-press.com/online-courses/production-planning-with-sap-s4hana/)

 

*Editor’s note*: This post has been adapted from a section of the book [*Production Planning with SAP S/4HANA*](https://www.sap-press.com/production-planning-with-sap-s4hana_6031/?utm_source=sappressblog&utm_medium=referral&utm_campaign=Blogs&utm_term=2673_chapter1&utm_content=2673)by [Jawad Akhtar](https://www.linkedin.com/in/jawadakhtar/). Jawad is an SAP logistics and supply chain management expert with a focus on business sales and delivery. He earned his chemical engineering degree from the Missouri University of Science and Technology in the United States. He has more than 20 years of professional experience, 16 of which have been spent working with SAP systems. He has experience working on several large-scale, end-to-end SAP implementation project lifecycles, including rollouts. He works with SAP clients to help them identify the root causes of business issues and address those issues with the appropriate SAP products and change management strategies. He now focuses on next-generation SAP products such as SAP S/4HANA, [SAP Integrated Business Planning](https://blog.sap-press.com/what-is-sap-ibp), [SAP Ariba](https://blog.sap-press.com/what-is-sap-ariba), and SAP Customer Experience.

 

This post was originally published 11/2021 and updated 9/2025.

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**Production Planning with SAP S/4HANA**

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