As soon as a planned order or other request is generated from material requirements planning, the information is passed on to shop floor control; the order-relevant data is also added to ensure complete order processing.
Production orders are used to control production within a company and also to control cost accounting.
Uses of Production Order
You can use the production order document to specify:
- What product need to be produced?
- When the production is going to take place?
- Which capacity is able to process the order?
- How much production costs will be incurrred?
Production orders can be created in the following ways:
- From customer requirement generated in requirements planning, that is, by converting a planned order to a production order.
- Using an assembly order.
- Without any previous requirement, that is, by creating it manually by Production Planning users.
When a user create a production order, the following actions are carried out by the system:
- A routing is selected, its operations and sequences are transferred to the production order.
- The bill of materials is exploded and the items in the bill of material are transferred to the order.
- Reservations are generated for bill of material items held in stock.
- The planned costs for the order are generated.
- The capacity requirements are generated for the work centers.
- Purchase requisitions are generated for non-stock items and externally-processed operations.
It's widely used for capturing the rework activities (components and activity cost), both for final rework and in-process rework activities.
Transaction code for Production Order
- CO01 - With Material
- CO07 - Without Material
- CO40 - From Planned Order
- CO41 - Collective Conversion of Planned Orders
- CO08 - For Sales Order
- CO10 - For Project
