April 17, 2019

Order Booking, Planning and Despatching in SAP ERP



Present majority of the companies use ERP systems for sales order booking, production order planning and release and despatch of finished goods to customers as per sales orders.

In SAP ERP Sales Order to Cash Process is explained well in:

https://erproof.com/sd/free-training/sap-order-cash-process/


The videos demonstrate the processes or activities in SAP ERP.


End to End Process - Sales Order Process to COPA

SAP and Cloud
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SAP PP - MRP RUN
Tutorials Point (India) Pvt. Ltd.

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SAP PP - Production Order
Tutorials Point (India) Pvt. Ltd.
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Outbound Delivery & Despatch - SAP Demonstration
kumar M
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Order Planning, Loading and Scheduling

Work Center


Work centers are areas in a business in which productive resources are organized and work is completed. It may be a single machine, a group of machines, or an area where a particular type of work is done. The work centers can be organized in a variety of ways including by function in a job-shop configuration; or by product in a flow, assembly line, or group-technology-cell configuration.


Scheduling and controlling functions of an operation are critical. The functions must be performed beginning with allocating orders, equipment, and personnel to work centers or the specified locations for short-run capacity planning. Next is the determination of the sequence of order performance or establishing job priorities. Initiating the scheduled work or dispatching of orders is followed by shop-floor control.


Loading - Infinite loading or Finite loading

A characteristic that distinguishes one scheduling system from another is how capacity is considered in determining the schedule. The scheduling systems can use infinite loading or finite loading.

Infinite loading occurs when work is assigned to a work center simply based on what is needed over time.

Finite loading actually schedules in detail each resource using the setup and run time required for each order.



Another characteristic, that distinguishes scheduling systems, is whether the schedule is generated forward or backward in time.

Processes can be machine limited or labor limited. Determining the sequence of orders and establishing job priorities are critical as is dispatching orders.

Shop floor control

Shop floor control is necessary to review job status and expediting late and/or critical orders when necessary. The schedule must be revised as necessary to reflect changes in order status.


Various priority rules work to satisfy job arrival patterns, the number and variety of machines in the manufacturing facility, the ratio of workers to machines in the shop, the flow pattern of jobs through the shop, the priority rules for allocating jobs to machines, and schedule evaluation criteria. Priority rules for allocating jobs to machines can use a variety of methods.



The objectives of work-center scheduling are to meet customer due dates, minimize lead-time, minimize set-up time, minimize work in process inventory, and maximize machine or labor utilization.

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