Production Planning is the process of aligning demand with manufacturing capacity to create production and procurement schedules for finished products and component materials.
SAP PP is an important module of SAP. It tracks and makes a record of the manufacturing process flows, for example, the planned and actual costs.
It is fully integrated with the other SAP modules: SD, MM, QM, FICO and PM.
Master Data in SAP PP
Master data is generally static for any company and is very rarely changed depending on the requirement. There are 5 master data to be maintained in Production Planning module.

1. Material Master
The material master contains information on all the materials that a company procures, produces, stores, and sells. It is a number uniquely identifies a material master record, and hence a material.

2. Bill of Material (BOM)
A bill of material is a complete, formally structured list of the components together with the quantity required to produce the product or assembly.

3. Work Center
A Work Center is a machine or group of machines where production operations are performed. Work centers are used in task list operations (Routings).

4. Routing
Routing is nothing but a sequence of operation performed at the Work Center. It also specifies the machine time, labor time, etc. for the execution of operations.

5. Production version
The production version is a combination of BOM and Routing data for production. It is a linkage between BOM & Routing and determines the manufacturing process.
There can be multiple production versions as per different manufacturing process to produce the product.
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