What is tracking limit in SAP PP - Production Planning and Control?

SAP Term: tracking limit

• Component: PP

• Component Name: Production Planning and Control

• Description: The tracking limit is defined in the material master record. It is used by the system to compare the quotient of the error total and the mean absolute deviation in the forecast calculation. If this quotient, known as the tracking signal, is less than the tracking limit the newly calculated forecast values are accepted. If the quotient is greater than the tracking limit, the system creates an exception message that indicates a structural interruption.

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• Key Concepts: 
  Tracking limit is a feature in SAP Production Planning and Control (PP) that allows users to set a maximum quantity of a material that can be produced in a given period of time. This limit is used to ensure that the production process does not exceed the available resources and capacity. The tracking limit can be set for each material and can be adjusted as needed. 
  
  How to use it: 
  To set a tracking limit, go to the PP module in SAP and select the “Tracking Limit” option. Enter the material number, the maximum quantity, and the period of time for which the limit should apply. Once the tracking limit is set, it will be enforced until it is changed or removed. 
  
  Tips & Tricks: 
  It is important to regularly review and adjust tracking limits as needed. This will ensure that production processes are running efficiently and that resources are being used effectively. Additionally, tracking limits can be used to prevent overproduction of materials, which can lead to unnecessary costs and waste. 
  
  Related Information: 
  For more information on tracking limits in SAP PP, please refer to the official SAP documentation. Additionally, there are many online tutorials and videos available that provide step-by-step instructions on how to set up and use tracking limits in SAP PP.