The Difference Between Planned Order and Production Order in SAP PP

Planned orders in SAP PP are used for material planning and scheduling at the earliest stage of the production process. They are recommendations for future production and are not yet firm commitments. Production orders, on the other hand, are created based on planned orders and represent a firm commitment to produce a specific quantity of a product at a specific time and location.

While planned orders can be changed or canceled without much impact on production, production orders are essential to the actual production process and cannot be easily altered once they are released.

Understanding the difference between planned orders and production orders is crucial in effective production planning and control in SAP PP.