Explaining the Difference between Planned Order and Production Order in SAP PP

In SAP PP, a Planned Order is a proposed production order that is generated based on the material requirements planning (MRP) run. It serves as an advanced notification of the production of a specific quantity of a product at a certain time.

On the other hand, a Production Order is a formal document that authorizes the production department to start the manufacturing process for a specific quantity of a product. It includes detailed instructions on the production process, including operations, resources, and timing.

While a Planned Order is more of a planning tool that helps in forecasting and capacity planning, a Production Order is the actual execution document that initiates the production process.

Therefore, the main difference between a Planned Order and a Production Order in SAP PP is that the Planned Order is a preliminary planning document, whereas the Production Order is the final authorization for production.