The Difference Between Planned Order and Production Order in SAP PP

In SAP PP, the key difference between a planned order and a production order lies in their timing and purpose.

Planned Order

A planned order is generated during the planning phase to estimate the required materials and capacity for production. It serves as a tentative proposal for production, providing insight into future demand and resource allocation.

Production Order

On the other hand, a production order is created once the planning is finalized and the production process is ready to begin. It represents the formal authorization to execute the production activities, detailing specific requirements and timelines for production execution.

Focus Keyword: SAP PP

Overall, while a planned order is a preliminary estimate for production planning, a production order is the concrete directive for executing the production process in SAP PP.