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

In SAP PP, a Production Order is a specific request to produce a certain quantity of a product at a specific time. It is a concrete document that triggers the production process, including procurement of materials, scheduling of operations, and tracking of costs.

On the other hand, a Planned Order is a proposal generated by the system to fulfill the demand for a product. It is used for planning purposes and does not result in immediate production. Planned orders help in determining the material and capacity requirements for future production.

Therefore, the main difference between a Production Order and a Planned Order in SAP PP is that the Production Order is a firm plan for immediate production, while the Planned Order is a tentative plan for future production.