1.3. SAP Work Centers Tutorial - Free SAP PP Training

5/8/2018 SAP Work Centers Tutorial - Free SAP PP Training
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SAP Work Centers
Written by Velmurugan Saravanavelu and last updated on October 16, 2017.
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Let’s start this tutorial with understanding what is

SAP Work Centers. A Work Center can be a place or a
machine or a labor where production operations/activities
are performed. In SAP PP, Work Center is used in routing
operations and production orders. Work centers also used
in other applications (SAP modules) like Plant
Maintenance, Project System, and Quality Management.
The goal of this tutorial is to explain basics of work centers

in SAP PP. First, it is necessary to understand what are the functions of work centers in
SAP and why do we need them.
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Functions of SAP Work Сenters in PP
In production planning, data in work center is used for the following operations:
1. Capacity Calculation
2. Scheduling of an Operations/Orders
3. Calculate Operation Costs
Integration with Other SAP Modules
Work center is integrated with the following business functions (or SAP modules):
1. Controlling (CO)
2. Human Resource (HCM)
3. Plant Maintenance (PM)
Work Center Capacity
Available Capacity
In general, capacity of SAP Work Centers means ‘available hours’ of a machine or labor
resource. These available hours exclude break or halt hours. For example, assume that a
lathe machine is available in a production plant from 9 AM to 9 PM and there will be a
break time of 2 hours for lunch and evening snacks. Now, the capacity of the lathe machine
is calculated as follows:
Available Capacity = 12 Hours (total hours) – 2 Hours (break)

Available Capacity = 10 Hours
Required Capacity
Required capacity of SAP Work Centers is hours required for a work center to produce a
particular quantity of an assembly. The SAP system uses the following information to
calculate required capacity for a work center:
Capacity formula. Capacity formula uses standard value key parameters (maintained on
the Basic data screen of SAP Work Centers transaction).
Operation time in a production order. This uses time defined in routing operation for
base quantity.
Let’s consider an example:
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A process in steel cutting unit uses a machine called “Plasma cutting” in which the
following standard value parameters are maintained:
Setup time
Machine time
Labor time
Let’s say in routing we have maintained the following times for the above parameters:
Base Quantity: 120 PC

Setup time: 30 minutes
Machine time: 90 minutes
Labor time: 90 minutes
Capacity formula defined for this machine is as follows:
Machine time * Quantity to be produced / Base quantity
When a production order for the quantity of 300 PC is created, the capacity is calculated as
follows:
Required Capacity = 90 mins * 300 PC / 120 PC

Required Capacity = 225 mins
There is also a concept of the number of individual capacities. This is the number of
individual machines available with similar capacity. When the SAP system calculates
required capacity it divides the number individual capacities in a formula and when
calculates available capacity it multiplies the number of individual capacities.
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Capacity formula defined for the machine is as follows:
Machine time * Quantity to be produced / Base quantity * No of splits
When a production order for the quantity of 300 PC is created, the capacity is calculated as
follows (if there are two machines available):
Required capacity = 90 mins * 300 PC / 120 PC * 2

Required capacity = 112.5 mins
SAP Work Centers Capacity Calculation
Scheduling in SAP Work Centers
In general, scheduling means calculation of start date/start time and end date/end time of
an operation performed in a work center based on a requirement date. The SAP system
uses the following details for scheduling an operation/machine:
Formula for scheduling in work center scheduling view.

Requirement date/time from an order.
Operation time from routing.
Inter-operation times (i.e. queue time, wait time, move time, etc.) from routing.
The SAP system do backward scheduling starting from the requirement date/time in order
to schedule the order.
Scheduling in SAP Work Centers
Here queue time, wait time and move time are known as “inter-operation times”.
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Queue Time
Time raw material/components need to wait before processing in a machine.
Wait Time
Time material must wait after processing in a work center.
Move time
Time required for material move to next work center for further processing.
Costing in SAP Work Centers
The SAP system calculate activity cost based on the following master data’s information:
Costing formula in a work center.

Operation time in a routing and an order.
Activity rate defined for the cost center which is assigned to the work center.
Costing in SAP Work Centers
How to Create SAP Work Centers?
SAP work centers can be created by any of the following methods:
1. By directly starting the transaction CR01.

2. By accessing the following menu path:
Create an SAP Work Center Menu Path
The system will show you the initial screen of the create work center transaction.
Create SAP Work Centers – Initial Screen
Here, it is important to specify work center category that controls screen sequence of the
work center data. In general, the following standard screens are available for creation of a
work center:
Basic data
Default values
Capacity data
Scheduling
Cost center assignment
Let’s discuss these screens in more details.
Basic Data
Basic Data Screen of SAP Work Center
L O C AT I O N
Location in which the work center is assigned.

This is used for Plant Maintenance purpose.
S U P P LY A R E A
Area in which raw material need to be moved for operation.
USAGE
Work center usage field control application or function area where it is used.
B A C K F L U S H I N D I C AT O R
Backflush in SAP is automatic posting of raw materials/components when production

activity is confirmed.
When we confirm an operation/work center for an order, BOM components that are
assigned with that particular operation/work centers (in routing) will be posted
automatically.
In SAP there are three places where we can set a backflush indicator:
Routing (components assignment) screen
Material master (MRP2 screen)
Work center (Basic data screen)
S TA N DA R D VA L U E K E Y
Standard value key may have a maximum of 6 parameters that are used to calculate:
Capacity
Scheduling
Costing
SAP calculates capacity, scheduling and costing using these parameters defined in the
formulas.
Example
Let’s say, I have defined the following standard value key and its parameters.
Standard value key: ZSAP1
Parameters:
Machine time (Hours) Z0001

Labor time (Hours) Z0002
A capacity formula can be defined as follows:
Z0001 * Operation quantity / Base quantity
Operation quantity is defined in an order and base quantity is defined in a routing.
Let’s say for the material “Wheel” the following settings are maintained in the routing:
Base quantity 10 PC
Machine time 30 Mins
Labor time 30 Mins
When a user creates a production order for 100 PC the SAP system calculates required
capacity as follows:
Capacity required (in Mins) = 30 mins (Z0001) * 100 (Operation quantity) / 10 (Base
quantity)
= 300 mins.
Default Values
Default Values Screen of SAP Work Center
Fields appearing in this screen are used as default values in routing which reduces the
time required to enter values in routing. When a user enters machine time for this work
center in routing as 100, the unit of measure will come automatically as MIN (copied from
work center data).
Similarly, when you enter this work center in routing for a particular operation, the SAP
system will automatically copy the control key from the work center.
Furthermore, if Reference Indicator is activated, values from the work center will be copied
and cannot be changed in routing. If we don’t want these default values to be copied to
routing, no need to enter any values on this screen.
For example, let’s consider the control key field:
For the work center Lathe we have maintained control key PP01.
Let’s say this work center is used in different products.
If you don’t want to use PP01 for all the products, do not activate Reference Indicator.
Capacity
Capacity screen in the work center transaction contains the following information:
Available capacity
Formula to calculate required capacity
Shift sequences
This will be explained in details in our next tutorial.
Capacities Screen of SAP Work Center
Scheduling
Scheduling screen of SAP work centers contains the following information:
Formula to calculate scheduling time

Inter-operation times like move time, wait time, etc.
Scheduling Screen of SAP Work Center
Costing
In the costing screen, SAP work center will be assigned to a cost center. Each cost center
will have activity types and formulas to calculate cost of activities. This will be explained in
more details in one of the next tutorials of SAP PP Training Course.
Assignment of a work center and a cost center can be N to 1. It means that several work
centers can be assigned to the same cost center but only one cost center can be assigned
to a work center.
SAP Work Center Assignment to Cost Center
Costing Screen of SAP Work Center
Did you like this tutorial? Have any questions or comments? We would love to hear your
feedback in the comments section below. It’d be a big help for us, and hopefully it’s
something we can address for you in improvement of our free SAP PP tutorials.
Navigation Links
Go to next lesson: SAP Work Center Capacity
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2 thoughts on “SAP Work Centers”
Chandru
October 16, 2017 at 9:36 am
excellent document and very easy to understand .. thank you sir
Tuan Lam
December 24, 2017 at 11:10 pm
A good tutorial!
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Home » SAP PP » SAP PP Training » SAP Work Centers

SAP Work Centers

Written by Velmurugan Saravanavelu and last updated on October 16, 2017.

Let’s start this tutorial with understanding what is

The goal of this tutorial is to explain basics of work centers

Functions of SAP Work Сenters in PP

Integration with Other SAP Modules

Work Center Capacity

Available Capacity = 12 Hours (total hours) – 2 Hours (break)

Let’s consider an example:

Base Quantity: 120 PC

Capacity formula defined for this machine is as follows:

Machine time * Quantity to be produced / Base quantity

Required Capacity = 90 mins * 300 PC / 120 PC

Capacity formula defined for the machine is as follows:

Machine time * Quantity to be produced / Base quantity * No of splits

Required capacity = 90 mins * 300 PC / 120 PC * 2

SAP Work Centers Capacity Calculation

Scheduling in SAP Work Centers

Formula for scheduling in work center scheduling view.

Scheduling in SAP Work Centers

Time raw material/components need to wait before processing in a machine.

Time material must wait after processing in a work center.

Costing in SAP Work Centers

Costing formula in a work center.

Costing in SAP Work Centers

How to Create SAP Work Centers?

SAP work centers can be created by any of the following methods:

1. By directly starting the transaction CR01.

Create an SAP Work Center Menu Path

Create SAP Work Centers – Initial Screen

Let’s discuss these screens in more details.

Basic Data Screen of SAP Work Center

Location in which the work center is assigned.

Area in which raw material need to be moved for operation.

Backflush in SAP is automatic posting of raw materials/components when production

Standard value key: ZSAP1

Machine time (Hours) Z0001

A capacity formula can be defined as follows:

Z0001 * Operation quantity / Base quantity

Operation quantity is defined in an order and base quantity is defined in a routing.

Default Values Screen of SAP Work Center

For example, let’s consider the control key field:

This will be explained in details in our next tutorial.

Capacities Screen of SAP Work Center

Scheduling screen of SAP work centers contains the following information:

Formula to calculate scheduling time

Scheduling Screen of SAP Work Center

SAP Work Center Assignment to Cost Center

Costing Screen of SAP Work Center

Go to next lesson: SAP Work Center Capacity

Go to previous lesson: SAP Bill of Materials

Go to overview of the course: SAP PP Training

2 thoughts on “SAP Work Centers”

excellent document and very easy to understand .. thank you sir

LATEST POSTS RECENT COMMENTS

SAP Easy Access Velmurugan Saravanavelu:

SAP Super User Tabish Bibikar:

What is SAP Reconciliation Account? sridevi:

SAP Functional Specification sridevi:

USEFUL LINKS ABOUT US

Contributors This is an unofficial blog about SAP certification, SAP

Contact Us (the company behind SAP ERP system). Your usage of