SAP PP – REM Step With T-code:

SAP REM Process step with T-code to cover full cycle of REM Process

Steps for REM process T-code

Create REM Profile OSP2

Create Cost Centre KS01

Create Primary and secondary Cost Element KA01

Create Activity type KL02

Activity type/Price Planning KP26

Work Centre CR01

Create Material MM01

Create BOM CS01

Create Routing/Rate Routing CA01/CA21

Create Production Version MM02 (After BOM and Rate Routing

Create PV)

Define Cost component structure OKTZ

Create Preliminary Product Cost KKF6N/(CK11N+CK24) or CK40N

collector/Standard Cost estimate

Primary Cost Estimate MF30

Maintain Stock Raw material or SFG Stock maintained

before MFBF

REM Confirmation MFBF

Post Processing MF47

To see Backlash documents MF12

Over head calculation CO42

Variance calculation KKS6

Settlement KK87

Repetitive Manufacturing (REM)

Company manufactures product in large numbers and production is quantity based and period
based not order based.
  Repetitive manufacturing is mainly used for the production scenarios with high product
stability, high repetition rates, and low product complexity.
 In master data production versions and cost collector is must where this is not mandatory in
discrete manufacturing.

Application Areas:

Industry Type: Mechanical engineering, Consumer goods, electronics, and many more

 Tact-based Flow manufacturing

 Period based production
 Mass production

Difference b/w Discrete and REM

REM Prerequisite

a. REM Profile
b. REM Indicator
c. Production Version
d. Product Cost Collector

SAP REM Full Cycle scenario

Basic Data:
  Plant : TAJA
 Company Code : 1000
 Storage Loc : TA01
 Material created

Sir No Material Material Type

1 AIRCOIL FERT
2 CORE ROH
3 SLEEVE ROH

Repetitive manufacturing profile to control how you want to carry out planning and back flushing in
repetitive manufacturing

Basic control parameter of the REM Profile

1. Whether you want to backflush activities.

2. Whether you want to work with reporting points in make-to-stock REM
3. How you want to process errors which occur when back flushing

Create the REM Profile:

SPRO  Production  Rep manufacturing  Control Data  Create REM Profile Assistant (T-Codes:
OPP3/OSP2)

With help of the REM profile assistant create the Make-to-Stock REM Profile “TJ” (REM Profile for
plant TAJA) here GI backflush at GR posting check mark and RP backflush is mandatory/Optional (as
per requirements)
 Here Planned order reduction period is given 3 , so In this period system reduces all
planned orders and run schedule quantities in the period

reduction
 Here below mention all movement type set for the REM profile TJ

 Create the finished material Air coil with Repetitive mfg. indicator and REM profile TJ maintained
in material master see view MRP -4 , ( MM01)
 Please create and maintained the BOM(CS01) and routing/Rate routing (CA01/CA21)
 Rate routing for top material Air Coil and assigned control key to the operation see in below
pic, (T-codes: CA21), here control key using for UK01 and UK02 for operation. (Standard SAP
control key with milestone confirmation is PP01)

 Create the Control key UK 02, with ‘milestone confirmation’ with help of the T-codes OP67.
 The milestone confirmation is a special form of confirmation, in which the confirmation of
one operation causes other operations or suboperations to be automatically confirmed at
the same time.

 Create the Production version T777 for finished material(Air coil) with help of material
master change (MM02), and in Selection method put indicator 2 or 3.
 Production version is combination of the BOM and Routing/Rate Routing. Overview
of the production version T777, more than one production version created as per
requirement and make sure current prod. Version not locked.
  As per REM profile selection for the product cost accounting

There are two different type of cost accounting exit.

1. Standard cost estimate per material.

You can create this cost estimate once in a period with reference to a routing. You can post activities on
the basis of this cost estimate if you produce a material using only one production version in one period.

Using T-code: CK11N do the standard cost estimate for current date and period, And release this standard
cost estimate through T-code: CK24.

2. Preliminary costing for the product cost collector.

You can create this cost estimate per production version. This makes sense if you produce one material
using different production versions and routing in one period.

Using T-code:KKF6N for create Preliminary cost estimation in REM.

 Here we selected preliminary costing for the product cost collector in REM profile

 Create the Plnd.Ind.Reqmnt(PIR) for the finished material Air coil with help of the T-code:
MD61
 See the below pic of the stock requirement list after generating the demand without run
MRP. (T-codes : MD04 )

 After run the MRP with help of the MD02 for finished material(Air Coil), MRP element is RS
and order type is PE
 In REM, we can do backflush(REM Confirmation) through planned order or finished material
using MFBF, here we selected the planned order

 Checking with Post with correction in tool bar of REM confirmation page before saving and
get the detail information of the all transaction variant with all detail.
 After saving system posted GR and GI document(As per REM profile setting GR and GI
done at same time)

 After the confirmation of the both planned order, good receipt done automatically and
available stock is 20. MD04 Screen

 With help of the Document overview on MFBF tab, we know the detail of the GR and GI
transaction, and with help of the Reverse tab we can reverse the process of movement and
material back to the stock.
I prepared this document for the understand the basic step of the SAP REM process, and i hope this
document helpful to clear the basic concept of the REM process.

Request to expert please correct me if any thing missing or wrong in this document.
PP-REM and Cost Control
Repetitive production is a special type of production that can be used
in integrated production scenarios or for a specific situation. This
article explains some uses and configurations regarding PP-REM.

For a long time, industries have been using PP-REM to obtain a

continuous flow of production. PP-REM is highly recommended for
production because it provides product stability and low complexity.
This type of production is well used in automobile industries, but it
can also be employed in other industry types, such as for wires and
nails manufacturing.

The main goal is to reduce the cost control and simplify the
completion confirmation via back-flushing process.

SAP provides a PP-REM area by means of OPP3 transaction – please

check information on PP-REM configuration here.

There are only four requirements for PP-REM implementation:

 REM Profile (OSPT / OSP2)

 Material Master Configuration ( MM01 / MM02)
 Production Version (C223 / MM02)
 Product Cost Collector ( KKF6N / KKF6M - Collective)

The main question regarding CO is the Cost Collector (KKF6N), which

will allow the material to be continuously settled without a specific
production order. However, before initiating the cost collector, we
need to follow preceding steps:

1. Create a BOM and a Routing (rate routing)

2. Define the standard cost estimate for current date and period
(CK11N)
3. Release this standard cost estimate (CK24)

Here, there is a crucial point of discussion: WIP. Normally, it is

possible to avoid WIP when using PP-REM, but this is linked to the
routing configuration. If this is configured with Report Point and with a
different point of confirmation (report pointing) until the final
confirmation, WIP will be possible [KKAT / KKAQ – WIP Display &
KKAS / KKAO – WIP Calculation]. The reason lays between one point
and another, since the process will generate more work – of course,
these points must be aligned with the production and there is no
impact in the Cost Collector configuration (but the production
manager must ensure the correct production confirmation).
Another important factor is regarding COGI. We have noticed the
same problems with no row material available when confirming the
Production Order, rather than with PP-DIS. It is possible to avoid COGI
via SAP configuration. COGI is a big problem and we know that it must
be “zero” by end of the day.

There are many reports to use in PP-REM, for instance to track the
confirmation point by point using the report MF26. There are other
reports as well, such as product costs [MCRK], product cost collection
[KKBC_PKO], preliminary costing for cost collector [MF30] and so on.

The production confirmation occurs through the specific PP

transaction (MFBF), where there are some additional functionalities,
such as reversal, scrap, change of row materials used, etc.

PP-REM uses the movement type 131 to confirm production order,

which differs from PP-DIS SAP that uses the movement type 101. Like
this, the material movement presents different account information.

After confirming, is possible to analyze variances [KKS5 Collective /

KKS6 Individual – the variances calculated with the version 0 will be
evaluated to COPA.

At end of the month, it is critical to execute the order settlement

[CO88 / KK87]. In this stage, the order balance can be balanced
transferring the differences to FI and to the Profit Center Accounting.
Additionally, it is possible to verify the contribution margin in COPA.

Below we can see some important tables behind PP-REM:

 Cost collector [AUFK]

 Reporting point quantities [CPZP]
 Reporting point documents [CEZP]
 Document log [BLPP]

PP-REM offers an easy way to integrate CO and Production and should

be considered whenever possible mainly to scenarios with low
complexity but keeping the information and responsibilities that you
can see in other scenarios.