SAP Demand Management:

MD61, MD62, MD04, MD74,

MD75
What is Planned Independent Requirement (PIR)?
Planned Independent Requirements (PIR) are used to perform
Demand Management functions.

A Planned Independent Requirement contains one planned

quantity and one date for a material, or one planned quantity split
over time according to dates.

PIR version "00" has an active indicator, which specifies that

requirements would be considered in Material Requirement
Planning (MRP).

 If you want to maintain a number of versions of planned

independent requirements, but do not want to include all
versions in the material requirement planning run, you can
set some versions to active and others to inactive, which
could be used for simulations in Long term Planning.

 PIR's are associated with requirement type which is driven

from planning strategies in the material master, which
determines methods of planning – Make to Stock or Make to
Order.
 PIR's are displayed in stock requirement list so that Planner
can see and plan the production based on it.
 PIR's are generally used in Make to stock environment where
business wants to build the stock based on the forecast and
not on sales orders.

Impact of Planning Strategies

 Planning strategies are broadly categorized into Make to

Stock (MTS) and Make to Order (MTO).

Make to Stock
  Make-to-stock production is implemented if you produce
stock without waiting for sales orders to arrive because you
want to deliver your customers immediately with materials
from that stock later on. You might even want to build stock
without having sales orders, if you predict that there might
be customer demand in the near future.
 Make-to-stock strategies are usually associated with a lot-
size key or a rounding value. For example, you may want to
produce the entire amount for the whole month once in a
month only, or you may want to produce for the exact PIR
quantity.
 In Planning Strategy 10, only PIR quantity is considered for
MRP run and sales orders are completely ignored. PIR is
reduced when you deliver the stock to the customer. PIR has
requirement type LSF.
 In Planning Strategy 40, Max of 2 (PIR and sales orders) are
considered for MRP and PIR is reduced as soon as sales
orders are entered. PIR has requirement type VSF.

Make to Order

 You do not want to produce finished products until you

receive a sales order from the customer.
 PIR are not considered in MTO, and only sales orders are
considered in MRP.
 You produce sales order stock and can deliver to the specific
customer only unlike in MTS scenario.
 Planning strategy (20) is widely used for make to order
process and strategy 25 is used for MTO with variant where
customer asks for variants in products.

In this tutorial- you will learn

 How to create Planned Independent Requirement (PIR)

 How to change PIR
 How to display Stock/Requirement List
 How to delete PIR data

How to Create Planned Independent

Requirement (PIR)
Step 1) From SAP Easy access screen open transaction MD61

1. Enter single material or Reqmts. plan (for multiple materials)

for which demand needs to be created.

2. Enter MRP area and Plant Code "INA2".

3. Enter version as "00", which is active version and

requirements would be considered in MRP run.

4. Enter the Planning horizon dates for which demand needs to

be created.

5. Enter planning period as month M.

After filling in all the fields, click or press Enter to go to the next
screen.

Step 2) In this Screen we are going to enter the requirement

quantity in monthly buckets,

1. Version "00" and Active check box flagged would come as

default which means it is an active requirement and would
be considered in MRP run.
 2. Enter the requirement quantity in monthly buckets

Click to save after filling all data, the system will show message
.

 If you want to delete the demand of one material, click of

the row and click the delete button .

How to Change PIR

Step 1) From SAP Easy access screen open transaction MD62

1. Enter parent material for which PIR needs to be changed.

2. Enter Plant Code.

3. Enter version as "00".

4. Input the planning horizon dates with planning period as

month M.
Step 2) After filling in all the fields, click to go to the next
screen.

1. Change the requirement quantity to 900 as shown below.

After finishing all modifications, click to save PIR. The system
will show a message like changed at the lower
left corner.

How to display Stock/Requirement List

Step 1) From SAP Easy access screen open transaction MD04
 1. Enter material for which stock/requirement list needs to be
displayed.
2. Enter Plant Code.

Step 2) After filling in all the fields, click to go to the next

screen and Stock/requirement list displayed.
 1. Display stock/requirements list of the material, where you
can see PIR (requirement type VSF driven from planning
strategy 40 in material master MRP3 view) quantity of 1000
EA reduced to 939 by sales orders.

How to delete PIR data

Step 1) From SAP Easy access screen open transaction
MD74/MD75
1. Enter Plant code

2. Enter Key date before which you need to delete whole PIR
data of the plant if no material is selected in the screen.

3. Flag Record history, delete inactive version and create list

check box.
Click execute button to run the report and move to next screen.

Step 2) In next screen, you will see the messages regarding

deletion of PIR.

1. Check the messages regarding deletion of PIR.

Troubleshooting

 There might be the case wherein material master record

does not exist. For this, you need to create the material
master for the material before creating PIR.
 Ensure right planning strategy is in place in material master
which drives the requirement type of PIR and based on that
PIR is considered in MRP run.