--- title: How to Reduce Capacity Requirements in SAP S/4HANA description: Optimize resource utilization in SAP S/4HANA by effectively reducing capacity requirements through confirmation, status changes, and proper forecasting. image: https://blog.sap-press.com/hubfs/How%20to%20Reduce%20Capacity%20Requirements%20in%20SAP%20S_4HANA.jpg --- [![rheinwerk-sappress-logo-header-1](https://blog.sap-press.com/hubfs/rheinwerk-sappress-logo-header-1.svg)](https://blog.sap-press.com/) [Blog](https://blog.sap-press.com) - Books - Get an overview of our books and courses on every relevant SAP topic. - [Programming](https://sap-press.com/programming/) - [Administration](https://sap-press.com/administration/) - [BI](https://sap-press.com/business-intelligence/) - [Finance](https://sap-press.com/finance-controlling/) - [Logistics](https://sap-press.com/logistics/) - [HR](https://sap-press.com/human-resources/) - [CRM & Sales](https://sap-press.com/marketing-sales/) - [HANA](https://sap-press.com/hana/) - [Introductions](https://sap-press.com/introductions/) - [E-Bites](https://sap-press.com/e-bites/) - [Certification Guides](https://www.sap-press.com/certification-guides/) - [Rheinwerk Courses](https://www.sap-press.com/online-courses/) - Book Subscription - Get unlimited access to all SAP PRESS books! - [SAP PRESS Subscription](https://sap-press.com/subscriptions/) [Logistics](https://blog.sap-press.com/tag/logistics) # How to Reduce Capacity Requirements in SAP S/4HANA ![SAP PRESS](https://blog.sap-press.com/hubfs/Twitter_profile_pic.svg) by [SAP PRESS](https://blog.sap-press.com/author/sap-press) Reducing capacity requirements is a crucial step to optimizing resource utilization, lower­ing operational costs, and improving efficiency by managing the capacity requirements to ensure that work centers and resources are released on time and effectively.   Reduction is triggered by the following actions: - Confirming completion - Selecting the **TECO** (**Technical Complete**) status on the order - Selecting the **Locked** status to lock an order - Selecting the **Deletion** checkbox Confirmation is a step in production execution used to formally acknowledge in [SAP S/4HANA](https://learning.sap-press.com/sap-s4hana-overview-benefits) that a specific operation of a production order or process order has been pro­cessed. The confirmation is managed by fulfilling the actual values of the quantity pro­duced, quantity consumed, scrap, labor hours, and so on of each operation. When the oper­ations are finally confirmed, the remaining capacity requirements are immediately set to zero, meaning that the step is completed. But what happens if we’re partially confirming an operation? In the manufacturing world, when using production orders or process orders, the system recalculates the *remaining capacity requirements* using the remaining quantity as reference.   When forecasting the standard values, the system calculates the formulas within these val­ues by following the **Control Capacity Reduction** maintained for the work center/resource on the **Capacity** tab of the overview screen. The right-hand side of the figure below shows the controls that can be assigned to each formula.   *![Control Capacity Reduction Options When Managing Work Centers](https://blog.sap-press.com/hs-fs/hubfs/image-png-Aug-10-2026-06-03-49-3496-PM.png?width=1275&height=872&name=image-png-Aug-10-2026-06-03-49-3496-PM.png)*   In this example, the control to calculate the remaining requirements/remaining duration after confirmation is the **Formula-Related** option. Let’s look at all the possible calculations and their definitions: - **Formula-Related:** The remaining requirements and remaining duration of a partially confirmed operation will be determined when the formula defined in the work center is evaluated. It’s the remaining quantity and not the operation quantity that is considered after executing the confirmation. - **Completely for Partial Confirmation:** The remaining requirement and remaining duration is fully reduced when there is a par­tial confirmation. - **Completely for Final Confirmation:** The remaining requirement and remaining duration are reduced completely just during the final confirmation, meaning the adjustment through partial confirmation won’t be considered. - **Proportional to Service:** The remaining requirement/remaining duration of a partially confirmed operation is reduced proportional to the service that’s assigned to the relevant capacity segment in the work center in your record type group. You might face issues after confirmation and note that the capacity reduction doesn’t work as expected because there’s a dependency when using the **Proportional to Ser­vice** option from the costing perspective. Whenever this control is defined, the **Record Type Group** should be assigned to the activity on the **Costing** tab of the work center.   Please review SAP Note 1789680 with a controlling expert for further information. This note is applicable for all SAP versions, such as SAP ERP, SAP S/4HANA Cloud Public Edi­tion, SAP S/4HANA Cloud Private Edition, and on-premise SAP S/4HANA.   [Explore more about SAP logistics in this learning journey](https://learning.sap-press.com/learning-journey/sap-logistics).   Editor’s note: This post has been adapted from a section of the e-book *[Capacity Planning with SAP S/4HANA](https://www.sap-press.com/capacity-planning-with-sap-s4hana_6280/?utm_source=sappressblog&utm_medium=referral&utm_campaign=Blogs&utm_term=2830_chapter5&utm_content=2830)* by [Jennifer Herrera](https://www.linkedin.com/in/jenniferchs/) and [Chandra Reddy](https://www.linkedin.com/in/chandra-reddy-6030863/). Jennifer is a production engineer from Venezuela with a master’s degree in information technology management. Chandra is an architect at the SAP Center of Expertise (SAP CoE) at SAP America, Inc. in Newtown Square.   This post was originally published 5/2026. ## Recommendation [![Capacity Planning with SAP S/4HANA](https://blog.sap-press.com/hs-fs/hubfs/social-suggested-images/2830_2d-1-4.png?width=170&name=2830_2d-1-4.png)](https://www.sap-press.com/capacity-planning-with-sap-s4hana_6280/?utm_source=sappressblog&utm_medium=referral&utm_campaign=Blogs&utm_term=2830_chapter5&utm_content=2830) **Capacity Planning with SAP S/4HANA** Balance workloads, visualize bottlenecks, and redistribute tasks with capacity planning in SAP S/4HANA! Start by configuring your system: maintain capacity categories, define availability checks, set up scheduling profiles, and more. Then get your hands dirty by creating and adjusting capacity requirements, generating realistic capacity schedules, and resolving overloads using capacity leveling. Evaluate capacity utilization with standard reports and SAP Fiori apps and monitor and improve your capacity planning processes. [Learn More](https://www.sap-press.com/capacity-planning-with-sap-s4hana_6280/?utm_source=sappressblog&utm_medium=referral&utm_campaign=Blogs&utm_term=2830_chapter5&utm_content=2830) ![SAP PRESS](https://blog.sap-press.com/hubfs/Twitter_profile_pic.svg) **by [SAP PRESS](https://blog.sap-press.com/author/sap-press)** SAP PRESS is the world's leading SAP publisher, with books on ABAP, SAP S/4HANA, SAP IBP, intelligent technologies, SAP Business Technology Platform, and more! 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