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 with those in SAP S/4HANA. It will also highlight some of the simplifications available in SAP S/4HANA.
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.
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.
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.
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.
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.
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.
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.
SAP ERP had ABAP list-based process instructions and browser-based process integration sheets. In SAP S/4HANA, your options are browser-based PI sheets and XSteps.
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.
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.
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.
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.
This functionality was available for SAP ERP, and unavailable for SAP S/4HANA, although it can be activated.
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.
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 provide far greater visibility into the internal and external requirement situations.
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.
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.
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.
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.
Editor’s note: This post has been adapted from a section of the book Production Planning with SAP S/4HANA by Jawad Akhtar. 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, SAP Ariba, and SAP Customer Experience.
This post was originally published 11/2021 and updated 9/2025.