C_TS422_2023 SAP Certified Associate - SAP S/4HANA Cloud Private Edition, Production Planning and Manufacturing Questions and Answers

In SAP S/4HANA Cloud Private Edition, alternative items in a BOM (transaction CS01/CS02) allow substitution of components based on predefined strategies. These are maintained in the BOM item data (Alternative Item Group and Strategy fields). The available strategies are:

Manual maintenance(C): This strategy (Strategy field: "1" - Manual Maintenance) allows planners to manually select which alternative item to use during production order processing (e.g., in CO02). The system does not automate selection, relying on user intervention based on availability or preference.

100% check(D): This strategy (Strategy field: "2" - 100% Check) ensures that only one alternative item is used per order, with the system checking availability (via ATP) for 100% of the required quantity. If the first item isn’t fully available, it moves to the next in the priority sequence (Priority field).

First in first out (FIFO)(A) is a stock management concept (e.g., in WM or batch determination),not a BOM alternative item strategy.Simultaneous(B) is not a standard strategy—alternative items are sequential or selective, not used simultaneously unless custom-developed. This aligns with SAP’s BOM functionality documentation.

In SAP S/4HANA,co-productsandby-productsare outputs of a production process, but they differ in purpose, valuation, and system handling:

Only co-products have movement type 101(C): Co-products are intentionally produced alongside the main product and are goods receipted into inventory using movement type 101 (transaction MIGO or CO11N confirmation) as part of the production order. This reflects their status as primary outputs with planned quantities in the BOM (marked with a negative quantity and co-product indicator in CS01). By-products, conversely, use movement type 531 for goods receipt, as they are secondary outputs.

Only co-products appear in the process or production order settlement rule(D): Co-products are included in the settlement rule of the production order (visible in CO02, Settlement Rule) because their costs are apportioned based on apportionment structures (e.g., equivalence numbers in the material master, MRP 2 view). By-products do not appear in the settlement rule; their costs are typically offset against the main product via a cost credit (configured in the BOM).

Only co-products have non-zero inventory valuation(A) is incorrect—by-products can also have inventory valuation (e.g., standard price), though often lower.Only co-products have movement type 531(B) is false—531 is specific to by-products, not co-products. This aligns with SAP’s co/by-product handling in production.

In SAP S/4HANA PP/DS, theInsert Operationscheduling mode (configured in the strategy profile, e.g., /SAPAPO/CDPSC11) is a finite scheduling option that inserts a new operation into an existing schedule while respecting capacity constraints. Effects include:

Scheduling of an operation takes place as close as possible to the desired date(A): The system schedules the operation (e.g., in /SAPAPO/PPDS_DISP) at the earliest feasible time slot near the desired date (specified in the order or planning parameters), considering finite capacity and resource availability.

Neighboring operations can be moved in both directions in order to create a slot(C): To accommodate the new operation, the system shifts existing operations forward or backward (within tolerances defined in the strategy profile), ensuring a feasible slot without overloading the resource.

Sequencing on multi-activity resources(B) isn’t automatically updated—this requires a separate heuristic (e.g., /SAPAPO/HEUR_SEQUENCE).Changes in the complete collective order(D) don’t occur automatically—collective orders require explicit rescheduling of linked orders, not an inherent feature of Insert Operation. This is per SAP’s PP/DS scheduling documentation.

SAP’sclean coreapproach for S/4HANA Cloud Private Edition aims for a standardized, upgrade-friendly system. Recommended guiding principles include:

Establish an organizational structure, technical foundation, and transformation methodology for clean core(A): SAP advises setting up a governance structure, technical standards (e.g., extensibility via SAP BTP), and a methodology (e.g., SAP Activate) to ensure clean core adoption, minimizing customizations from the start.

Establish release management(C): Effective release management (e.g., via SAP Solution Manager or SAP Cloud ALM) ensures regular updates are applied smoothly, maintaining a clean core by avoiding conflicts with custom code and leveraging new standard features.

Define roles and responsibilities as part of a process transformation office(E): A dedicated transformation office with clear roles (e.g., process owners, IT architects) oversees clean core adherence, ensuring accountability for standardization and extensibility across teams.

Integrate clean core practices in the end-to-end value process chain(B) is a goal, not a distinct principle—it’s an outcome of other principles.Regular housekeeping tasks(D) (e.g., data archiving) supports operations but isn’t a core clean core principle, which focuses on design and governance. This is per SAP’s clean core strategy.

In SAP S/4HANA,lead time schedulingfor a production order (e.g., in CO01, Scheduling Type: Lead Time Scheduling) calculates detailed operation dates using routing data and buffers. Relevant time elements include:

Float after production(C): Defined in the material master (MRP 2 view, field: Float After Production) or scheduling margin key (Customizing, OPPT), this buffer time after the last operation ensures flexibility before the order’s end date (e.g., for quality checks), extending the total lead time.

Setup time(D): Maintained in the routing (CA01, Standard Values, field: Setup Time), this is the time to prepare the work center for an operation. It’s included in the operation duration (calculated via work center formulas, CR02), directly impacting the lead time schedule.

Opening period(A) (MRP 2 view) is a buffer before production starts, relevant for order release, not lead time scheduling within the order.Total replenishment lead time(B) (MRP 2 view) is a high-level estimate for MRP, not detailed operation scheduling. This is per SAP’s lead time scheduling rules.

In SAP S/4HANA Cloud Private Edition, Advanced Planning (PP/DS) integrates with core master data, and the "Advanced Planning" flag activates PP/DS-specific planning. This flag can be set in:

Work center(A): In the work center (transaction CR02, Basic Data tab, field: Advanced Planning), checking this flag (or integrating with a resource in APO/PP/DS) enables detailed scheduling and capacity planning in PP/DS. It designates the work center as a resource for finite scheduling (e.g., in /SAPAPO/RES01).

Material(D): In the material master (MM02, Advanced Planning tab, field: PP/DS Planning), activating this flag makes the material relevant for PP/DS planning. It enables features like detailed scheduling, heuristics, and integration with APO or embedded PP/DS functionalities.

Plant(B) doesn’t have an Advanced Planning flag—PP/DS activation is at the system or object level (e.g., via CIF integration model), not plant-specific.Production version(C) (MRP 4 view) links BOMs and routings but lacks a specific PP/DS flag—its relevance comes from the material and work center settings. This is per SAP’s PP/DS master data setup.

In SAP S/4HANA Cloud Private Edition, theKanban processmanages material replenishment using control cycles (transaction PKMC). Supply sources are configured as follows:

Use run schedule quantities for in-house production(A): For in-house production, the Kanban control cycle (PKMC) can specify a production supply area and a production version (MRP 4 view). When a Kanban is set to "Empty," the system generatesrun schedule quantities(planned orders in repetitive manufacturing, confirmed via MFBF), replenishing stock from the production line.

Use stock transfer reservations for stock transfer(B): For stock transfer between storage locations, the control cycle defines a replenishment strategy (e.g., "0002" - Stock Transfer). When triggered, astock transfer reservation(visible in MB23) is created to move stock from a source storage location to the Kanban bin, managed via goods movement (e.g., MIGO).

Use purchase orders for external procurement(C): For external procurement, the control cycle links to a scheduling agreement or contract (ME31K). Setting a Kanban to "Empty" generates apurchase orderor schedule line (visible in ME38), triggering replenishment from the vendor.

Use quotations(D) isn’t a standard Kanban supply source—quotations (ME47) are pre-procurement documents, not direct replenishment triggers.Use purchasing costs for automated source prioritization(E) isn’t a Kanban feature—source selection is manual or via control cycle settings, not cost-based automation. This is per SAP’s Kanban setup documentation.

In an SAP S/4HANA Cloud brownfield project,clean core principlesemphasize minimizing customizations, leveraging standard processes, and ensuring extensibility. SAP Signavio tools support process remodeling:

SAP Signavio Process Governance(C): This tool (part of the Signavio suite) enables process execution and monitoring, ensuring compliance with redesigned standard processes. It supports workflow automation and governance, aligning remodeled processes with clean core by enforcing best practices and reducing custom code.

SAP Signavio Process Manager(D): This tool is used for process modeling and documentation (e.g., BPMN 2.0). It allows the customer to redesign existing processes visually, map them to S/4HANA standard capabilities, and identify deviations, supporting a clean core approach by aligning with SAP’s reference processes.

SAP Signavio Process Insights(A) provides analytics on current process performance (e.g., bottlenecks), not remodeling.SAP Signavio Process Intelligence(B) focuses on process mining and data-driven insights, not direct remodeling. This is per SAP’s Signavio and clean core documentation.

In SAP S/4HANA, the MRP planning file (table MDVM, visible via MD05) tracks changes that trigger MRP to re-evaluate a material’s planning situation. Entries are created when:

Changing the procurement type in the product master(C): The procurement type (material master, MRP 2 view, field: Procurement Type) determines whether a material is produced in-house ("E"), procured externally ("F"), or both ("X"). Changing it (e.g., via MM02) affects how MRP generates planned orders or purchase requisitions, so an entry is added to the planning file (e.g., NETCH or NETPL indicator) to prompt recalculation.

Changing the stock in inventory management(D): Any stock change (e.g., goods receipt via MIGO, goods issue via MB1A) updates the available stock (MD04). This triggers an MRP planning file entry because it alters the net requirements calculation, requiring MRP (MD01/MD02) to reassess supply versus demand.

Changing the delivery address in transportation management(A) affects logistics execution (e.g., shipment documents), not MRP planning directly—no entry is created.Changing the storage bin in warehouse management(B) (e.g., via LT10) is a WM-level movement that doesn’t impact MRP unless stock quantity changes, which falls under (D). This is per SAP’s MRP planning file logic.

Planning withplanned independent requirements(PIRs) in SAP S/4HANA (entered via MD61) for finished materials offers benefits in a make-to-stock or forecast-driven environment:

Reduced delivery times(A): By planning PIRs in advance (e.g., strategy 10 or 40), production can start before sales orders arrive, ensuring finished goods are available in stock. This shortens the time between order receipt and delivery, improving customer service levels.

Reduced times for final assembly(B): In strategies like 40 (Planning with Final Assembly), PIRs trigger procurement and production of components early. When sales orders arrive, only final assembly is needed, reducing the overall lead time for completion.

Option to forecast planning for production resources(C) is a byproduct of capacity planning (e.g., CM01), not a direct benefit of PIRs—PIRs focus on material demand.Option to use make-to-order production(D) contradicts PIRs, which are for make-to-stock or forecast-based planning (e.g., strategies 10, 40), not MTO (e.g., strategy 20). This is per SAP’s demand management benefits.

Before creating a bill of material (BOM) in SAP S/4HANA (transaction CS01), certain prerequisites must be clarified:

Is the material type allowed in the BOM?(B): The material type (material master, MM01) determines whether a material can be used in a BOM. For example, "FERT" (finished goods) or "HALB" (semi-finished) are typical header materials for production BOMs, while "ROH" (raw materials) are components. This is configured in Customizing (Logistics - General > Material Master > Define Attributes of Material Types), and the system checks this during BOM creation.

What status does the BOM have?(D): The BOM status (CS01, header data, field: BOM Status) must be defined—e.g., "1" (Active) for production use or "2" (Inactive) for testing. This status controls whether the BOM can be used in MRP or production orders, and it must be decided upfront to ensure correct application.

In which storage location is the BOM required?(A) is irrelevant—BOMs are plant-specific, not storage-location-specific (storage location is relevant for stock, not BOM structure).Which base unit of measure does the material have?(C) is important for component quantities but is a material master attribute (Basic Data view) checked during entry, not a pre-creation question. This is per SAP’s BOM creation process.

In SAP S/4HANA process manufacturing (using process orders, transaction COR1), managing production flow for liquid chemicals in physically connected tanks requires:

Resource selection(B): In the master recipe (C201) or process order (COR2), you can define resource selection conditions (e.g., via classification in the resource, CRC1, Basic Data tab). This ensures only suitable tanks (e.g., based on attributes like material compatibility or capacity) are selected for operations, restricting production to physically appropriate resources.

Resource network(D): A resource network (Customizing, Production > Process Order > Master Data > Define Resource Networks) defines the physical connections between resources (e.g., tanks, pipes) in a plant. It specifies valid flow paths (e.g., Tank A to Tank B), ensuring process orders (COR1) schedule operations only on connected tanks, enforced during scheduling or dispatching.

Resource hierarchy(A) (CR21) aggregates capacities for planning, not physical connections.Resource matrix(C) isn’t a standard SAP term—it might refer to custom setups, but it’s not a defined feature for tank connectivity. This is per SAP’s process manufacturing controls.

In SAP S/4HANA, during the creation of planned orders or production orders, the system relies on specific master data to determine the production process, components, and operations. The system checks the following:

In the bill of material (BOM)(C): The BOM (maintained in transaction CS01/CS02) defines the components required for production. MRP explodes the BOM to generate dependent requirements for planned orders, and production orders inherit this structure. The BOM’s validity (e.g., date, lot size) and usage (e.g., production) are verified during order creation.

In the MRP controller(D): The MRP controller (material master, MRP 1 view, field: MRP Controller) influences master data selection indirectly through its configuration in Customizing (e.g., Production > Material Requirements Planning > Master Data > Define MRP Controllers). It can determine planning parameters and production versions, affecting order creation.

In the routing(E): The routing (maintained in transaction CA01/CA02) specifies the operations, sequence, and work centers for production. During order creation, the system selects the routing to define the production process, ensuring the correct operations are assigned to the order.

In the production version(A) is critical for linking BOMs and routings, but the system checks within the BOM and routing directly once the version is selected, not the version itself as a "check location."In the work centers(B) provides capacity and scheduling data, but the system does not check master data selection settings there—it uses the routing to reference work centers. This aligns with SAP’s production planning master data integration.

In SAP S/4HANA, planning strategies (material master, MRP 3 view, Strategy Group) determine how production aligns with demand. The scenario describes a pure make-to-stock (MTS) environment where goods are produced based on forecasts (planned independent requirements, PIRs) and held in stock, with excess customer orders not affecting the production program:

Make-to-stock production (10)(D): Strategy 10 uses PIRs (entered via MD61) to drive production, and finished goods are stocked (goods receipt via CO15). Sales orders (VA01) are fulfilled from stock, and excess demand beyond the forecast does not trigger additional production or consume PIRs—it’s handled separately (e.g., via backorder or rejection). Thisensures the production program remains stable, based solely on the forecast.

Assembly processing with production orders (82)(A) is a make-to-order (MTO) strategy tied to sales orders, not forecasts.Planning with final assembly (40)(B) allows sales orders to consume PIRs, potentially impacting production if demand exceeds the forecast.Planning without final assembly (50)(C) plans subassemblies based on PIRs, with final assembly triggered by sales orders, also affecting production. Strategy 10 meets the requirement per SAP’s MTS planning logic.

In SAP S/4HANA,midpoint scheduling(used in capacity planning, e.g., CM21, or PP/DS) schedules operations around a fixed midpoint (e.g., a critical operation), adjusting other operations forward or backward. Thereduction strategy(configured in Customizing, transaction OPU3, or work center CR02, Scheduling tab) reduces certain interoperation times to compress the schedule when dispatching:

Queue time(A): Defined in the routing (CA01, Interoperation Times tab, field: Queue Time), this is the buffer time before an operation starts. The reduction strategy (e.g., Level 1 to 6 in OPU3) can reduce queue time progressively (e.g., by percentage or to a minimum), allowing tighter scheduling.

Move time(C): Also in the routing (Interoperation Times tab, field: Move Time), this is the transport time between work centers. The reduction strategy can shorten move time to fit operations within capacity constraints, optimizing the overall schedule.

Teardown time(B) (routing, Standard Values, e.g., Teardown Time) is part of the operation’s base duration, not an interoperation time, so it’s not reduced by the strategy—it’s fixed unless manually adjusted.Setup time(D) (Standard Values) is similarly operation-specific and not typically reduced by interoperation-focused strategies. This is per SAP’s scheduling and reduction logic.

A production version in SAP S/4HANA (material master, MRP 4 view) links a BOM and routing for production. For it to be valid and consistent:

The deletion flag must NOT be set for the bill of material (BOM) or the routing(A): If the BOM (CS02) or routing (CA02) has a deletion flag, it cannot be used in production planning or execution, rendering the production version invalid. This is a basic integrity check in SAP.

The assigned routing and bill of material (BOM) must be valid in the entire validity period(C): The production version’s validity period (e.g., Valid From/To dates) must align with the BOM and routing’s validity. If either expires or is invalid during the version’s timeframe, the system cannot use it (checked in MRP or order creation).

The lot size range must be within the lot size range of the assigned routing(E): The production version’s lot size (MRP 4 view) must fall within the routing’s lot size range (CA02, header data). If the order quantity exceeds this range, the version is inconsistent for planning.

The consistency check(B) (transaction C252) is a manual validation tool, not a requirement for validity—it’s optional.Same validity period(D) is not mandatory; overlapping validity is sufficient, as long as both are valid when needed. This is per SAP’s production version documentation.

In SAP S/4HANA PP/DS, theFinite Scheduling with Reversestrategy (configured in the strategy profile, transaction /SAPAPO/CDPSC11) schedules operations backward from a fixed end date, respecting finite capacity. To allow scheduling in the past (e.g., before today’s date):

Specify a negative offset time(A): In the strategy profile (Detailed Scheduling tab, field: Scheduling Offset), a negative value (e.g., -2 days) shifts the scheduling reference point into the past. This allows operations to be scheduled before the current date, accommodating scenarios where late planning or historical adjustments are needed, while still respecting capacity constraints.

Negative opening period(B) isn’t a standard PP/DS parameter—it’s a production order term (MRP 2 view) for order start buffers, not scheduling control.Negative planning horizon(C) (Planning Horizon in /SAPAPO/CDPSC11) defines the future planning scope, not past scheduling.Negative PP/DS horizon(D) refers to the PP/DS planning horizon (Customizing), which limits planning scope forward, not backward. This is per SAP’s PP/DS scheduling configuration.

In SAP S/4HANA Advanced Planning (PP/DS),peggingis a key concept that links supply (receipts) to demand (issues) across the production structure. It is defined as:

An evaluation that is ordered according to the bill-of-material structure of all related products and represents the relationship between the receipt and the issue elements(A): Pegging (visible in /SAPAPO/RRP3 or Product View) assigns receipt elements (e.g.,planned orders, stock) to issue elements (e.g., sales orders, dependent requirements) based on the BOM hierarchy. It follows the BOM structure (top-down or bottom-up) to ensure each demand is covered by a specific supply, maintaining traceability and sequence (e.g., fixed or dynamic pegging).

Option B (overstock situations) relates to stock analysis, not pegging’s core purpose. Option C (network structure) is inaccurate—pegging uses BOM, not a network, and focuses on assignment, not just coverage. Option D (shortages) is a result of planning, not pegging’s definition, which is about linking, not identifying gaps. This aligns with SAP’s PP/DS pegging documentation.

In SAP S/4HANA Advanced Planning (PP/DS - Production Planning and Detailed Scheduling), infinite planning assumes unlimited capacity availability during the initial planning phase. When the documentation states that "new orders are created through infinite planning," it means that MRP generates planned orders without checking the existing capacity load on work centers. Thus,MRP creates the capacity requirements without considering existing load on the work centers(B). This approach prioritizes material availability and scheduling over capacity constraints, leaving capacity leveling to a subsequent step (e.g., using heuristics or manual adjustments in PP/DS).

Option A is incorrect because infinite planning does not sequence capacity requirements after the last operation; it ignores capacity entirely. Option C is not accurate, as "earliest possible time" implies a finite scheduling logic, which contradicts infinite planning. Option D is also incorrect, as infinite planning does not consider available capacity for assignment. This is consistent with SAP’s PP/DS documentation, where infinite planning is a preliminary step before finite scheduling.

In SAP S/4HANA repetitive manufacturing, confirming a finished product (e.g., via transaction MFBF) triggers default actions based on the REM profile (Customizing, OSP2):

Post the goods receipt for the finished product(A): When saving a confirmation (MFBF,Backflush tab), the system posts a goods receipt (movement type 101) for the finished product into stock (e.g., unrestricted use), assuming backflushing is active in the REM profile (field: Backflush Mandatory).

Reduce run schedule quantities(B): The confirmed quantity reduces the openrun schedule quantities(planned orders in MD04 or MF50), aligning the planned production with actual output to prevent overproduction.

Update statistics for the Business Information Warehouse(D): Confirmation data (e.g., quantity, time) updates statistical tables (e.g., S031, S032) for reporting in SAP BW or embedded analytics, providing insights into production performance (enabled by default in standard settings).

Post production costs to the planned order(C) is incorrect—costs are posted to aproduct cost collector(KKF6N) in REM, not planned orders, based on the REM profile’s costing settings.Create associated capacity requirements(E) occurs during planning (e.g., MRP), not confirmation—capacity is consumed, not created, at this stage. This is per SAP’s REM confirmation process.

In SAP S/4HANA, the goal is to plan in-house production of a semi-finished material using planned independent requirements (PIRs), with those PIRs consumed by dependent requirements from the finished good’s production:

Planning at assembly level (70)(D): Strategy 70 (material master, MRP 3 view, Strategy Group: 70) is designed for subassemblies or semi-finished materials. PIRs are entered for the semi-finished material (MD61), triggering in-house production (planned orders via MRP). When a sales order for the finished good is received, the dependent requirements (from BOM explosion) consume these PIRs within the consumption period (MRP 3 view), aligning production of the semi-finished material with higher-level demand.

Assembly processing with production orders (82)(A) is an MTO strategy tied to sales orders, not PIRs.Planning with final assembly (40)(B) applies to finished goods, where PIRs are consumed by sales orders, not dependent requirements of semi-finished items.Production by lot size (30)(C) focuses on lot-size-based production without consumption logic. Strategy 70 is explicitly designed for this scenario per SAP documentation.