Long Term Planning Transfer to
SAP Best Practices Baseline Package
SAP Best Practices
Scenario Overview – 1
Purpose and Benefits:
Check if the budgeted sales quantities can be produced, assess material
requirements and utilization of the manufacturing cost centers.
Avoid bottlenecks, over- and under-absorption in production. Material
requirements planning as a basis for purchasing contracts.
Key process flows covered
Create sales plan and transfer to SOP (Sales and Operations Planning).
Rough matching of budgeted sales quantities and production resources in SOP.
Create planning scenario in “Long Term Planning” to simulate production
planning for the budgeted sales quantities.
Based on simulated production and operative production data (bills of material,
routings), work center capacity and material requirements are calculated.
Use material requirements for AOP – purchase material price planning.
Use work centers capacity in AOP – general cost center planning.
Scenario Overview – 2
SAP Applications Required:
SAP ECC 6.0 EhP3
Company roles involved in process flows
Scenario Overview – 3
Detailed Process Description:
AOP – SOP through Long Term Planning Transfer to
Please refer to specification 172 – AOP - Sales Quantity Budget and Transfer
to SOP for all steps concerning the planning of sales quantities.
The current specification starts with the transfer of confirmed sales quantities
to Sales and Operations Planning (SOP). In SOP rough cut capacity planning
is carried out in order to verify whether the goods planned to be sold can run
through the company’s bottleneck resources needed for production.
After the production plan has been proven feasible by SOP, it is passed on to
a planning scenario in Long Term Planning module (LTP). In LTP, planned
independent requirements (PIR) are created.
Based on these PIRs, Materials Requirements Planning (MRP) is simulated
to create and review planned requirements for all the materials (components,
raw materials) and resources. Simulation of MRP also allows review of
capacities of the plants. Capacity leveling can then be carried out to smooth
out the bottlenecks.
After having run MRP as described above, one of the key objectives of the
logistics part of AOP is achieved: calculate the total utilization of the activity
types assigned to the manufacturing work centers needed to produce the
budgeted sales quantities. The utilization is based on the consumption of
activity types indicated in the routings of the (semi finished and finished)
products of the production plan.
Process Flow Diagram
SOP through Long Term Planning Transfer to LIS/PIS/Capacity
Annual AOP – Manufacturing AOP -
Operating Standard Cost Cost Center Purchased
Plan Calculation Planning Material Price
(178) (176) Planning (174)
AOP - Sales
Transfer to Inactive Accepta
SOP Verification Demand LTP LTP MRP Capacity Planning ble Plan?
AOP= Annual Operating Planning LTP= Long Term Planning
SOP= Sales and Operations Planning MRP= Materials Requirements Planning
Symbol Description Usage Symbol Description Usage Comments
Band: Identifies a user role, such as Accounts Role band To next / From last Diagram: Leads Flow chart continues on the next /
to the next / previous page of the previous page
Payable Clerk or Sales Representative. This band contains tasks Diagram
can also identify an organization unit or group, common to that Diagram
rather than a specific role. role. Connection
The other process flow symbols in this table go into
these rows. You have as many rows as required to
cover all of the roles in the scenario. Hardcopy / Document: Identifies a Does not correspond to a task
printed document, report, or form step in a document; instead, it is
Hardcopy / used to reflect a document
External Events: Contains events that start or end the Document generated by a task step; this
scenario, or influence the course of events in the shape does not have any outgoing
scenario. flow lines
Financial Actuals: Indicates a Does not correspond to a task
Flow line (solid): Line indicates the normal sequence Connects two financial posting document step in a document; instead, it is
tasks in a Financial used to reflect a document
of steps and direction of flow in the scenario. scenario generated by a task step; this
Flow line (dashed): Line indicates flow to infrequently-
process or a shape does not have any outgoing
used or conditional tasks in a scenario. Line can non-step event flow lines
also lead to documents involved in the process flow.
Business Activity / Event: Identifies an action that Does not Budget Planning: Indicates a Does not correspond to a task
either leads into or out of the scenario, or an outside correspond to a budget planning document step in a document; instead, it is
Business Process that happens during the scenario task step in the used to reflect a document
Budget generated by a task step; this
Activity / document
Planning shape does not have any outgoing
Event flow lines
Unit Process: Identifies a task that is covered in a Corresponds to
step-by-step manner in the scenario a task step in Manual Process: Covers a task Does not generally correspond to
the document that is manually done a task step in a document;
Unit Process Manual instead, it is used to reflect a task
Proces that is manually performed, such
s as unloading a truck in the
warehouse, which affects the
Process Reference: If the scenario references another Corresponds to
scenario in total, put the scenario number and name a task step in
Process here. the document
Existing Version / Data: This block Does not generally correspond to
Reference covers data that feeds in from an a task step in a document;
Existing external process instead, this shape reflects data
Version / coming from an external source;
Data this step does not have any
Sub-Process Reference: If the scenario references Corresponds to incoming flow lines
another scenario in part, put the scenario number, a task step in
Sub- name, and the step numbers from that scenario here the document
Reference System Pass / Fail Decision: This Does not generally correspond to
System block covers an automatic a task step in the document;
Pass/F decision made by the software instead it is used to reflect an
Process Decision: Identifies a decision / branching Does not
ail automatic decision by the system
Decisio that is made after a step has been
point, signifying a choice to be made by the end usually executed.
user. Lines represent different choices emerging correspond to a n
Proces from different parts of the diamond. task step in the
Decisio Reflects a
n choice to be
made after step