1. SOP through Long Term Planning Transfer to LIS/PIS/Capacity
SAP Best Practices

2. Purpose, Benefits, and Key Process Steps
Check if the budgeted sales quantities can be produced, assess material requirements and utilization of the manufacturing cost centers.
Benefits
Avoid bottlenecks, over- and under-absorption in production. Material requirements planning as a basis for purchasing contracts.
Key Process Steps
Create sales plan and transfer to SOP (Sales and Operations Planning).
Rough matching of budgeted sales quantities and production resources in SOP.
Create planning scenario in “Long Term Planning” to simulate production planning for the budgeted sales quantities.
Based on simulated production and operative production data (bills of material, routings), work center capacity and material requirements are calculated.
Use material requirements for AOP – purchase material price planning.
Use work centers capacity in AOP – general cost center planning.

3. Required SAP Applications and Company Roles
Enhancement package 5 for SAP ERP 6.0
Company Roles
Strategic Planner

4. Detailed Process Description
AOP – SOP through Long Term Planning Transfer to LIS/PIS/Capacity
Please refer to specification 172 – AOP - Sales Quantity Budget and Transfer to SOP for all steps concerning the planning of sales quantities.
The current specification starts with the transfer of confirmed sales quantities to Sales and Operations Planning (SOP). In SOP rough cut capacity planning is carried out in order to verify whether the goods planned to be sold can run through the company’s bottleneck resources needed for production.
After the production plan has been proven feasible by SOP, it is passed on to a planning scenario in Long Term Planning module (LTP). In LTP, planned independent requirements (PIR) are created.
Based on these PIRs, Materials Requirements Planning (MRP) is simulated to create and review planned requirements for all the materials (components, raw materials) and resources. Simulation of MRP also allows review of capacities of the plants. Capacity leveling can then be carried out to smooth out the bottlenecks.
After having run MRP as described above, one of the key objectives of the logistics part of AOP is achieved: calculate the total utilization of the activity types assigned to the manufacturing work centers needed to produce the budgeted sales quantities. The utilization is based on the consumption of activity types indicated in the routings of the (semi finished and finished) products of the production plan.

5. SOP through Long Term Planning Transfer to LIS/PIS/Capacity
Process Flow Diagram
SOP through Long Term Planning Transfer to LIS/PIS/Capacity
Event
AOP – Standard Cost Calculation
(178)
AOP - Manufacturing Cost Center Planning
(176)
AOP - Purchased Material Price Planning (174)
Annual Operating Plan
Strategic Planner
AOP - Sales Quantity Budget and Transfer to SOP (172)
Yes
Operative Production Data
Acceptable Plan?
SOP Verification
Transfer to Inactive Demand Management
LTP
LTP MRP
Capacity Planning No
AOP= Annual Operating Planning LTP= Long Term Planning
SOP= Sales and Operations Planning MRP= Materials Requirements Planning

6. Legend Symbol Description Usage Comments Symbol Description
Band: Identifies a user role, such as Accounts Payable Clerk or Sales Representative. This band can also identify an organization unit or group, rather than a specific role.
The other process flow symbols in this table go into these rows. You have as many rows as required to cover all of the roles in the scenario.
Role band contains tasks common to that role.
External Events: Contains events that start or end the scenario, or influence the course of events in the scenario.
Flow line (solid): Line indicates the normal sequence of steps and direction of flow in the scenario. Flow line (dashed): Line indicates flow to infrequently-used or conditional tasks in a scenario. Line can also lead to documents involved in the process flow.
Connects two tasks in a scenario process or a non-step event
Business Activity / Event: Identifies an action that either leads into or out of the scenario, or an outside Process that happens during the scenario
Does not correspond to a task step in the document
Unit Process: Identifies a task that is covered in a step-by-step manner in the scenario
Corresponds to a task step in the document
Process Reference: If the scenario references another scenario in total, put the scenario number and name here.
Sub-Process Reference: If the scenario references another scenario in part, put the scenario number, name, and the step numbers from that scenario here
Process Decision: Identifies a decision / branching point, signifying a choice to be made by the end user. Lines represent different choices emerging from different parts of the diamond.
Does not usually correspond to a task step in the document; Reflects a choice to be made after step execution
Symbol
Description
Usage Comments
To next / From last Diagram: Leads to the next / previous page of the Diagram
Flow chart continues on the next / previous page
Hardcopy / Document: Identifies a printed document, report, or form
Does not correspond to a task step in a document; instead, it is used to reflect a document generated by a task step; this shape does not have any outgoing flow lines
Financial Actuals: Indicates a financial posting document
Budget Planning: Indicates a budget planning document
Manual Process: Covers a task that is manually done
Does not generally correspond to a task step in a document; instead, it is used to reflect a task that is manually performed, such as unloading a truck in the warehouse, which affects the process flow.
Existing Version / Data: This block covers data that feeds in from an external process
Does not generally correspond to a task step in a document; instead, this shape reflects data coming from an external source; this step does not have any incoming flow lines
System Pass / Fail Decision: This block covers an automatic decision made by the software
Does not generally correspond to a task step in the document; instead it is used to reflect an automatic decision by the system that is made after a step has been executed.
Diagram Connection
<Function>
External to SAP
Hardcopy / Document
Financial Actuals
Business Activity / Event
Budget Planning
Unit Process
Manual Process
Process Reference
Sub-Process Reference
Existing Version / Data
Process Decision
System Pass/Fail Decision