How SAP Production Planning (BOMs, routings, work centres, production orders, process orders, repetitive manufacturing, MRP, and subcontracting) maps to D365 manufacturing (production BOM, formula, routes, operations, resources, lean kanban, master planning); and how SAP product costing — cost component split, standard cost estimate, order settlement, WIP, variance, and actual costing via the material ledger — maps to D365 cost groups, costing sheet, costing versions, and production variance analysis.
SAP Production Planning is two modules in one. The first is a manufacturing execution model: BOMs define what is made from what, routings define how it is made and where, production orders execute the plan and collect actual costs.
SAP BOMs are defined across three tables. MAST links a material to one or more BOM headers. STKO holds the BOM header, carrying the plant, BOM usage (1 = production, 2 = engineering, 4 = PM, 5 = sales/SD), BOM alternative, base quantity, and validity dates.
SAP discrete production orders (AUFK + AFKO + AFPO) are the standard manufacturing execution object. An order is created for a specific material and plant, carrying a BOM alternative and routing selection, planned and actual quantities, and order-level status management. Operations are confirmed via CO11N;
SAP MRP runs per plant per material, using planning strategies from the MRP profile on MARC. Key planning strategy groups: make-to-stock (strategy 10/11), make-to-order (strategy 20/50), planning with final assembly (strategy 40).
SAP product costing calculates the standard cost of a material by rolling up BOM component costs and routing operation costs through the production structure. The result is stored in a costing run (KEKO header, CKIS unit costing items) and can be broken down into cost components via the cost component structure (T6MC, KEPH values).
When a production order ends in SAP, transaction CO88 (order settlement) performs: WIP calculation (KKAX): values any in-progress work at standard cost Variance calculation (KKS1): computes the difference between actual cost (materials issued, confirmations posted) and the standard cost of output Settlement: posts WIP and variances to…
SAP PP and product costing map to D365 manufacturing with generally close fidelity. The production order, BOM, routing, and standard costing process are equivalent in intent. The gaps are specific and consequential: