3602092 - Understanding MRP Calculations Considering The Scrap Factor in SAP Business ByDesign

• A discrepancy is noticed in the Material Requirements Planning (MRP) calculations in SAP Business ByDesign.
• The system shows a pegged quantity of Y Quantity for the input products after running the MRP for a planning proposal of X Quantity.
• This is deviant to the expected quantity based on the calculation formula (Requested Quantity*Scrap Factor).

X and Y represent a numerical value.

SAP Business ByDesign

1. Navigate to the Supply Planning work center.
2. Go to the Products view.
3. Find and select the relevant Product ID in the Planning Area.
4. Open the Product Planning Details.
5. Select the row with the Production Proposal.
6. Open Material Flow.
7. Observe that the system has pegged the Quantity of Y for the Inputs which is more than the expected Quantity per the above Formular.

The MRP calculations are correct. The discrepancy arises from the way the system calculates the scrap values.

1. Understand that the scrap factor is picked up from the REPM of the Output Product, where a certain scrap factor has been maintained.
2. Note that the system calculates the Scrap values as follows:

• Step 1: 100 minus the maintained Scrap percentage.
• Step 2: Requested Quantity divided by the outcome of Step 1 (Requested Qty / (100 - scrap%)).
• Step 3: Result of Step times 100 equals to the pegged Quantity (Output Quantity considering scrap factor).

3569132 - Inaccurate Calculation of "Actual Scrap" in "Yield and Scrap" Report 

MRP, calculation, SAP Business ByDesign, pegged quantity, production scrap, planning proposal, planning area, scrap factor, output quantity, input products. , KBA , AP-SDM , Supply and Demand Matching , Problem