Difference between Production Order and Planned Order in SAP PP

In SAP PP, Production Order and Planned Order are two important concepts in the production planning process. Here are the key differences between them:

Production Order

A Production Order is a formal request to produce a specific quantity of a product within a specified timeframe. It is a specific and detailed plan that includes information such as material requirements, operations, resources, and scheduling. Production Orders are used for executing the production process on the shop floor.

Planned Order

A Planned Order, on the other hand, is a tentative proposal to produce a certain quantity of a product at a future date. It serves as an initial planning document that helps in determining the material requirements and capacity planning. Planned Orders can be converted into Production Orders based on the actual requirements and constraints.

In summary, Production Orders are used for actual production execution, while Planned Orders are used for initial planning and preparation in SAP PP.