How Does Production Planning Differ Between SAP ERP and SAP S/4HANA?

This blog post will highlight the differences in features and functionalities available for production planning in SAP ERP versus SAP S/4HANA.



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


Production Engineering and Operations

In SAP ERP, production engineering and operations is not available. In SAP S/4HANA, production engineering and operations is embedded with additional license cost.



In SAP ERP, predictive MRP (pMRP) is not available. In SAP S/4HANA, both pMRP and its predecessor from SAP ERP, LTP, are simulative tools and both are available in SAP S/4HANA.


MRP Live

In SAP ERP, MRP Live is not available. In SAP S/4HANA, MRP Live offers far greater options to select relevant parameters such as multiple plants, materials, and MRP controllers. It also handles master production scheduling (MPS) materials in addition to MRP materials in a single transaction. Learn about MRP Live and classic MRP here


Externally Procured Material

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


Delivery Schedule Lines for Externally Procured Materials

In SAP ERP, there is an option to choose creation of delivery schedule lines for externally procured materials. In SAP S/4HANA, delivery schedule times are automatically created during the MRP run via the MRP Live transaction.


Production Version

In SAP ERP, it is optional for discrete manufacturing; mandatory for process and repetitive manufacturing. The selection method is based on validity date, lot size, and explosion date were available. No mass creation functionality for the production version exists. In SAP S/4HANA, it is mandatory for all production types (discrete, process, and repetitive). The selection method is not available, and the production version with the latest “valid from” date is considered. For mass creation of production versions, two reports are available via Transaction SM38: CS_BOM_PRODVER_MIGRATION and CS_BOM_PRODVER_MIGRATION2.


Process Management

Process management is handled by ABAP list-based process instructions and browser-based PI sheets. In SAP S/4HANA, process management is done through browser-based PI sheets and XSteps.


Quota Arrangement

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


Repetitive Manufacturing

In SAP ERP, repetitive manufacturing (REM) includes action control, fair share rule, push distribution, and deployment horizons. In SAP S/4HANA, all are now considered by default and hence not available in SAP S/4HANA.


Planning File Entry

In SAP ERP, net change planning in the planning horizon (NETPL) is available. In SAP S/4HANA, NETPL is unavailable as MRP Live always determines the shortages and requirements of all materials in the scope of planning.


BOM Header Quantity Range

In SAP ERP, BOM header quantity ranges enable a user to define a quantity range for which the BOM is applicable. In SAP S/4HANA, it is not available.


MRP Area for Storage Location

This is available in SAP ERP and unavailable in SAP S/4HANA.


Consumption Mode in MRP

In SAP ERP, the following consumption modes are available: backward consumption only, backward/forward consumption, forward consumption only, and forward/backward consumption. In SAP S/4HANA, in addition to the four consumption modes available from SAP ERP, a fifth consumption mode, period-based consumption, is available. In this new consumption method, sales orders, dependent requirements, or material reservations consume planned independent requirements (PIRs) that lie within the consumption period of the PIRs.


Monitor Internal and External Requirements

In SAP ERP, this functionality is not available. A user can 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 provide far greater flexibility into the internal and external requirements situations.


Analyze PIR Quantity

In SAP ERP, this is not available. 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 analyze for monthly periods in the past.


Excess Component Consumption, Material Scrap, and Component Scrap

In SAP ERP, this is not available. 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.



As you can tell, there are a lot of differences between production planning in SAP ERP and production planning with SAP S/4HANA. This post outlined key functionality and whether it is available in both, or just one solution.


Editor’s note: This post has been adapted from a section of the book Production Planning with SAP S/4HANA by Jawad Akhtar.


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

Streamline your production planning process with SAP S/4HANA! Get step-by-step instructions for configuring and using SAP S/4HANA for discrete, process, and repetitive manufacturing. Then dive into production tools and functionalities like batch management, S&OP, predictive MRP, DDMRP, and the Early Warning System. This foundational guide is full of industry examples to help you maximize your production planning!

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