SAP TUTORIALS-
SAP PP Interview Questions And Answer 2025-26
Introduction-
SAP PP Interview Questions And Answer 2025-26-
In SAP Hana And ECC 6.0 PP (Production Planning) is a key module in SAP ERP that helps businesses ... If you are preparing for an SAP PP interview, here are some commonly asked questions along with their answers-
Que 1-)Can you explain the key steps in the SAP PP life cycle?
Answer:-
-Demand Planning – Forecast customer demand using Planned Independent Requirements (PIRs).
-Material Requirements Planning (MRP) – Runs MRP to determine required materials and generate Planned Orders.
-Production Order Creation – Converts planned orders into Production Orders (CO01) for execution.
-Capacity Planning – Ensures resource availability for efficient production.
-Production Execution – Issues raw materials and starts production.
-Goods Receipt (GR) – Receives finished goods into inventory.
-Order Settlement & Reporting – Confirms production and updates cost records.
Que 2-)What role does a Work Center play in the manufacturing process?
Answer:-
-In SAP HANA And ECC 6.0 Production Planning (PP), a Work Center represents a physical location or machine where production activities take place. It plays a key role in manufacturing by defining where and how operations are performed.Work Centers are assigned to Routing, which specifies the sequence of production steps. They store essential data like capacity, labor costs, scheduling parameters, and machine efficiency. Work Centers also support costing,capacity planning, and scheduling in production orders. By accurately defining Work Centers, businesses can optimize resource utilization, reduce production delays, and improve efficiency in the manufacturing process.
Que 3-)What are Make-to-Stock (MTS) and Make-to-Order (MTO) in SAP PP?
Answer:-
-MTS (Make-to-Stock): Products are manufactured in advance based on demand forecasts and stored in inventory. Customer orders are fulfilled directly from stock. This is used for mass production industries like FMCG and automotive.
-MTO (Make-to-Order): Production starts only after receiving a customer order. Each order is processed separately, reducing inventory costs but increasing lead time. This is common in industries like custom manufacturing and aerospace.
Que 4-)How does Consumption-Based Planning work in SAP PP-MM?
Answer:-
-Consumption-Based Planning (CBP) in SAP MM/PP is a material planning strategy that determines procurement based on historical consumption data rather than demand forecasts. It ensures materials are replenished when stock levels fall below a defined threshold.
-Types of CBP:
-Reorder Point Planning (ROP): Triggers procurement when stock reaches a minimum level.
-Forecast-Based Planning (FBP): Uses past consumption trends to predict future demand.
-Time-Phased Planning (TPP): Procurement happens at fixed time intervals.
Que 5-) What is the purpose of the MRP Profile in SAP?
Answer:-
-The MRP Profile in SAP MM/PP is a template that stores predefined Material Requirements Planning (MRP) settings for materials. It helps in standardizing MRP parameters across multiple materials, ensuring consistency and efficiency in planning.By assigning an MRP Profile during material master creation, fields like planning type, lot-sizing, procurement type, and safety stock are automatically populated. This reduces manual entry effort and ensures accurate MRP execution.
Que 6-)How do different MRP types impact material planning in SAP?
Answer:-
-PD (MRP - Material Requirements Planning): Plans materials based on dependent and independent demand using BOM and MRP run.
-VB (Manual Reorder Point Planning): Triggers procurement when stock falls below a predefined level.
-VV (Forecast-Based Planning): Uses historical consumption data to predict future demand.
-R1 (Time-Phased Planning): Plans materials at fixed intervals, useful for predictable demand.
Que 7-)How does SOP help in demand and supply planning?
Answer:-
-Sales and Operations Planning (SOP) in SAP PP helps balance demand and supply by creating a structured forecasting and planning process. It enables businesses to analyze historical sales data, predict future demand, and align production capacity accordingly.SOP ensures optimized inventory levels, reduces stockouts, and prevents overproduction by integrating sales forecasts with production planning. It supports both Standard SOP (predefined planning structures) and Flexible SOP (customizable planning structures) to suit business needs.
Que 8-)What are the Production order type?
Answer:-
-Standard Production Order (PP01): Used for regular in-house production.
-Rework Order (PP03): Created to correct defective products.
-Process Order (PI01): Used in process industries like chemicals and pharmaceuticals.
-Repair Order (PP10): Used for maintenance and refurbishment.
Que 9-)Different types of SOP in SAP PP?
Answer:-
-Standard SOP: Uses a predefined planning structure (Info Structure S076) for demand forecasting and production planning. It is suitable for routine, straightforward planning processes.
-Flexible SOP: Allows businesses to create customized planning structures tailored to specific requirements. It provides more flexibility in defining key figures and data sources beyond the standard setup.
Que 10-)Why is pooled capacity used in SAP PP?
Answer:-
-Pooled Capacity in SAP PP is used to share workload across multiple work centers with similar capabilities. Instead of assigning capacity to a single work center, pooled capacity allows multiple work centers to access the same resource pool, ensuring efficient resource utilization and load balancing.It is particularly useful in multi-machine or multi-labor setups, where different machines or workers can perform the same task. By using pooled capacity, companies can reduce bottlenecks, improve flexibility, and optimize production scheduling.
Que 11-)What is the role of employee integration in SAP PP?
Answer:-
-Employee integration in SAP PP links human resources (HR) data with production planning to manage workforce allocation, track labor efficiency, and optimize capacity planning. By integrating SAP HR (HCM) with PP, businesses can assign employees to work centers, define shift schedules, and calculate labor costs in production orders.This integration helps in real-time tracking of workforce availability, ensuring efficient scheduling and workload distribution. It also enables attendance-based cost calculations, improving accurate production costing.
Que 12-)Can you explain the integration of Quality Management (QM) with Production Planning (PP)?
Answer:-
SAP PP and QM integration ensures quality control during production by linking inspection processes with manufacturing activities. When a production order is released, the system automatically creates an inspection lot based on predefined inspection types (e.g., in-process or final inspection).During production, quality checks are performed at various stages, and results are recorded in SAP QM. If defects are found, corrective actions like rework or scrap can be triggered.This integration helps in maintaining product quality, reducing defects, and ensuring compliance with industry standards.
Que 13-)Can you Define Difference between MD04 and MD05.
Answer:-
-MD04 (Stock/Requirements List) and MD05 (MRP List) are both used for Material Requirements Planning (MRP) monitoring in SAP but use different purposes..
-1)MD04 (Stock/Requirements List): Displays real-time, dynamic stock and demand updates, reflecting the latest changes in material movements (e.g., new purchase orders, reservations). It helps in daily inventory monitoring.
-2)MD05 (MRP List): Shows static data generated during the last MRP run, without reflecting new changes. It is useful for analyzing past MRP results.
Que 14-)How system calculate the actual cost in sap pp?
Answer:-
SAP PP, the actual cost of production is calculated based on real-time consumption of resources, including materials, labor, machine time, and overheads.
1-)Material Costs: Determined from the bill of materials (BOM) and actual material consumption recorded in goods issue (MB1A/MIGO).
2-)Labor & Machine Costs: Captured from work center activity rates and time confirmations (CO11N)
3-)Variance Calculation: The system compares planned vs. actual costs and posts differences to costing reports (KKBC_ORD, CO03).
Que 15-)What are the different transaction code KO88 or CO88.?
Answer:-
1-)KO88 (Actual Settlement: Internal Orders): Used for settling internal orders (e.g., cost centers, assets, projects). It transfers costs from internal orders to the appropriate cost objects (cost centers, assets, etc.).KO88 → Internal Order Settlement (CO module)
2-)CO88 (Actual Settlement: Production Orders): Used for settling production orders in SAP PP. It transfers actual costs from production orders to cost centers, material stock, or profitability analysis (CO-PA).CO88 → Production Order Settlement (PP module)
Que 16-)When does a planned order get converted into a production order in SAP PP?
Answer:-
-SAP HANA And ECC 6.0 SD, a condition table is a database table that stores pricing-related data, such as customer-specific prices, discounts, and taxes. It defines the key fields (e.g., customer, material, sales organization) used for pricing determination.A condition record contains actual pricing values stored within a condition table. For example, if a specific customer receives a 10% discount, the system retrieves this from the relevant condition record during sales order processing. Condition records are maintained using VK11 (Create), VK12 (Change), and VK13 (Display). These elements work together to enable dynamic and flexible pricing in SAP SD.
Que 17-)Is it possible to create a delivery without a shipping point in SAP SD?
Answer:-
IN SAP HANA AND ECC 6.0 planned order is converted into a production order in SAP PP when the production decision is finalized. This conversion typically happens when Material Requirements Planning (MRP) suggests production, and the planner manually converts it using T-Code: CO40 (Convert Planned Order) or directly in MD04 (Stock/Requirements List).
Que 18-)What is Customer Independent Requirement (CIR) in SAP PP?
Answer:-
-IN SAP HANA AND ECC 6.0, Customer Independent Requirement (CIR) in SAP PP represents forecasted demand that is not tied to a specific sales order but is used for Make-to-Stock (MTS) production planning. It helps in predicting future demand based on historical sales data, market trends, or business strategies.CIRs are entered in T-Code: MD61 and consumed during Material Requirements Planning (MRP) to generate planned orders or purchase requisitions. The system reduces CIRs when actual sales orders are received. This ensures smooth production flow, optimized inventory levels, and better capacity planning, aligning production with anticipated market demand.
Que 19-)How does batch management work in SAP PP?
Answer:-
IN SAP HANA AND ECC 6.0, PP Batch management in SAP PP ensures tracking and traceability of materials in production orders. It is used for quality control, expiration date management, and material differentiation based on attributes like manufacturing date, supplier, or composition.When a production order is created, the system assigns or allows manual selection of batches for raw materials using batch determination (T-Code: COB1, MSC1N). The produced finished goods are also assigned a batch number, which helps in inventory tracking, recall management, and compliance.Batch management integrates with QM for inspections and WM for stock handling, ensuring efficient production and material traceability.
Que 1-)What is SAP PP?
Que 2-)What is pooled capacity in SAP PP?
Que 3-)What are the main components of SAP PP?
Que 4-)What are the different types of production processes supported in SAP PP?
Que 5-)What are the lot size you have used?
Que 6-)Explain PI sheet?
Que 1-)What is a Production Version in SAP PP?
Que 2-)What is a Bill of Materials (BOM) in SAP PP?
Que 3-)What is Routing in SAP PP, and how does it work?
Que 4-How does Material Master impact production planning?
Que 1-)What is the difference between a Planned Order and a Production Order?
Que 2-)What is Backflush, the places where the backflush is used?
Que 3-)What is MRP Area or How can I excluede one storage location stock from MRP?
Que 1-)What is Capacity Planning in SAP PP?
Que 2-)What is the role of Lead Time in production planning?
Que 3-)How does the system handle Overloaded Work Centers?
Que 1-)What are the different types of Production Orders?
Que 2-)What is the lifecycle of a Production Order in SAP PP?
Que 3-)What are Order Types in SAP PP?
Que 4-)What is the role of SOP (Sales & Operations Planning) in SAP PP?
Que 5-)How does Long-Term Planning (LTP) work in SAP PP?
Que 6-)What is Repetitive Manufacturing in SAP PP?
Que 7-How does SAP PP integrate with SAP QM for quality checks?
Que 8-)How do you monitor Work in Progress (WIP) in SAP PP?
Que 9-)What is the use of Order Settlement in SAP PP?
Que 10-)How does SAP PP support Costing and Profitability Analysis?