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Figure 6-18: Data in a planned order

Outcomes
The obvious outcome of the request production step is a planned order, which
is a transaction document. Because this step generates no fi nancial impact, no
FI or CO documents are created. Likewise, because there is no movement of
materials, no material documents are created. In our example, the planned
order will indicate a request to produce 25 men’s off-road bikes (ORMN1000)
in the Dallas plant (DL00).

Demo 6.4: Create a planned order

AUTHORIZE PRODUCTION
Whereas a planned order is simply a request, a production order, which is
created in the authorize production step, represents an actual commitment to
produce a specifi c quantity of materials by a certain date. Numerous resources,
such as materials, work centers, and PRTs, are committed to producing the
materials specifi ed in the production order. A production order is typically cre-
ated by converting a planned order. However, it can also be generated directly
without using a planned order. This process is similar to creating a purchase
order without reference to a purchase requisition or creating a sales order
without reference to a quotation. Figure 6-19 displays the key elements of the
authorize production step.

Data
Figure 6-20 illustrates the key data needed to create a production order. Note
that much of this information is also included in the planned order. User input
is generally needed only if a planned order is not used as a reference or if the
data in the planned order, such as quantity and dates, must be changed.

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