What is planning area in SAP SCM-SOP - Sales & Operations Planning?

SAP Term: planning area

• Component: SCM-SOP

• Component Name: Sales & Operations Planning

• Description: A set of the following configuration elements that together define the structure of your planning process: Dimensions and attributes Time profile Key figures and calculations A planning area always contains a baseline dataset and can additionally contain many scenario datasets. They can be understood as different versions of data to carry out what-if analysis. A company can have multiple planning areas to enable planning in different business units or different types of planning. However, it is not possible to plan across planning areas.

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• Key Concepts: 
  A planning area is a logical grouping of data in the SAP Sales & Operations Planning (SCM-SOP) component. It is used to define the scope of planning activities and to store the data that is used for planning. The planning area contains all the relevant master data, such as products, customers, and materials, as well as the actual planning data. 
  
  How to use it: 
  The planning area is used to define the scope of planning activities and to store the data that is used for planning. It can be used to create a plan for a specific product, customer, or material. The planning area can also be used to create a plan for a specific time period or region. 
  
  Tips & Tricks: 
  When creating a planning area, it is important to consider the scope of the plan and the data that will be used. It is also important to consider how often the plan will be updated and how often the data will need to be refreshed. 
  
  Related Information: 
  The SAP Sales & Operations Planning (SCM-SOP) component provides additional features and functionality related to planning areas, such as versioning and simulation capabilities. Additionally, there are other components in SAP that can be used in conjunction with SCM-SOP, such as SAP Advanced Planning & Optimization (APO) and SAP Supply Chain Management (SCM).