What is low-level coding in SAP PP-MRP - Material Requirements Planning?

SAP Term: low-level coding

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: The low-level code defines the sequence in which all materials included in the planning run are planned. The procedure of low-level coding takes into account that a material can appear in several products and in more than one explosion level of a BOM. This procedure groups the total requirements for a material at the lowest explosion level in which the material appears, that is, the low-level code.

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• Key Concepts: 
  Low-level coding is a feature of SAP's Material Requirements Planning (MRP) component. It is used to determine the lowest level of detail needed to accurately plan and manage material requirements. Low-level coding helps to ensure that the right materials are available at the right time and in the right quantities.
  
  How to use it: 
  Low-level coding is used to assign a unique code to each item in the MRP system. This code is used to identify the item and its associated data, such as quantity, price, and delivery date. The code can also be used to track inventory levels and plan for future orders.
  
  Tips & Tricks: 
  When setting up low-level coding, it is important to ensure that the codes are unique and easy to remember. It is also important to keep track of changes in inventory levels and adjust the codes accordingly.
  
  Related Information: 
  Low-level coding is an important part of SAP's MRP system and can be used in conjunction with other features such as material requirements planning (MRP) and capacity requirements planning (CRP). It can also be used in conjunction with other SAP components such as production planning (PP) and warehouse management (WM).