When a production order is created in SAP S/4HANA, the system ensures that it contains the complete information needed to proceed with actual production.
However, a production planner can’t initiate the actual production until the production order is released. Only a released production order enables you to do the following:
- Print shop floor papers.
- Withdraw materials from the warehouse.
- Confirm the operations for the order.
- Record GR for the order.
As with other business functions in production execution, there are several options you can choose from to efficiently manage the release of individual or multiple production orders:
- Automatic release on creation of production order
- Individual release
- Collective release
We’ll discuss these options in the following sections.
Automatic Release
You can automatically release a production order as soon as it’s created by making the relevant settings in the production scheduling profile and assigning it to the material master. The automatic production order release option is more applicable in business scenarios in which there is a short lead time between order creation and release or in scenarios in which the business and production processes are mature enough to use this option.
Using this option enables a production planner to eliminate the step of creating and then releasing an order and thus optimizes the business process, but it also offers only a loose control, with no intermediate check to see if the scheduling permits production, for example.
Individual Release
When you create a production order, the system assigns it a CRTD status, which denotes that it’s in the creation stage. You release it by clicking the Release icon. On release, the system updates the status of the order from CRTD to REL. This option will release the entire production order and thus release all of its operations, but a production planner can also control the release of an individual operation within the production order.
For example, if there is a long production or lead time for operations, then you can maintain greater control with a release at the operation’s level. To do this, choose Operation > Release in the operation overview screen of the production order.
This figure shows the popup that lets the user decide whether to release the production order despite any material, capacity, or PRT shortage.
To avoid having to release individual operations, you can use a trigger point.
Collective Release
To release several production orders simultaneously, you use the collective release option. To do so, follow menu path Logistics > Production > Shop Floor Control > Control > Collective Release or use Transaction CO05N.
The next figure shows the parameter selection screen where you can define the parameters— such as material number, plant, order type, MRP controller, and production supervisor—that will enable the system to bring up relevant orders for release.
For example, you can define Material as “FG129,” define production Plant as “1710,” and click Execute or press (F8). The screen shown in the below figure will then appear. It consists of a production order that has the CRTD (created) status. Select the order and then select the Execute option from the Mass Processing icon’s dropdown list.
The mass processing log then appears and shows that the collective release of production orders was successful (see next figure). During the production order’s release, the system carried out the material availability check; on finding no missing part (material shortage) or other issues, it successfully executed the release function.
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 7/2025.
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