What is 'reference rate routing' in SAP PP - Production Planning and Control?

reference rate routing - Overview

• Component: PP

• Component Name: Production Planning and Control

• Description: A task list type that defines a sequence of operations that is repeated regularly. A reference rate routing simplifies entering data in rate routings.

reference rate routing - Details

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  Key Concepts: 
  Reference rate routing is a feature in SAP Production Planning and Control (PP) that allows users to define a reference rate for a production order. This reference rate is used to calculate the planned costs of the production order. The reference rate is based on the cost of the materials, labor, and overhead associated with the production order. 
  
  How to use it: 
  To use reference rate routing in SAP PP, users must first define a reference rate for the production order. This can be done by entering the cost of materials, labor, and overhead associated with the production order into the system. Once this is done, the system will calculate the reference rate based on these costs. The reference rate can then be used to calculate the planned costs of the production order. 
  
  Tips & Tricks: 
  When defining a reference rate for a production order, it is important to ensure that all costs associated with the production order are accurately entered into the system. This will ensure that the reference rate is accurate and that the planned costs of the production order are calculated correctly. 
  
  Related Information: 
  Reference rate routing is just one of many features available in SAP Production Planning and Control (PP). Other features include material requirements planning (MRP), capacity planning, and shop floor control.