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SAP Business One MRP Setup Checklist: How Ready Is Your Data?

The SAP Business One MRP wizard is only as good as the data under it. This assessment scores the ten things that most often make MRP output untrustworthy, so you can fix them before the first run.

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1. How many active items have a planning method set (MRP or None) and a procurement method (Buy or Make)?

On the Planning Data tab of the item master.

2. Are lead times entered for purchased and manufactured items?

Lead time and order interval or multiple on the item, and lead time on the vendor.

3. How accurate are your production BOMs?

4. How accurate is on-hand inventory by warehouse?

Based on cycle counts or stock takes.

5. Are minimum stock, order multiples and minimum order quantities set where they matter?

6. Do you have a defined MRP scenario with warehouses, item groups and a planning horizon?

Created in the MRP wizard under Production, then MRP.

7. Are open sales orders, purchase orders and production orders kept current, with closed ones actually closed?

8. Is there a named planner who reviews recommendations and converts them to documents?

9. Are preferred vendors and purchase prices set so purchase recommendations can become orders?

10. Have you tested the MRP run in a copy of the company database and compared the output with a manual calculation for a few items?

How to use the assessment

Answer the ten questions honestly, ideally with the planner and the person who maintains item master data in the same room. Your score is shown as a percentage of the maximum, and the band tells you what to do next. Use the exported result as an input to an implementation plan or a go-live readiness review. If you score low, do not read it as failure: most companies discover the same lead time and inventory accuracy gaps when they first switch MRP on.

How the B1 MRP wizard works

In B1 you define an MRP scenario, choosing the planning horizon, the warehouses, the item or item group filters and which documents count as demand and supply. The wizard then runs and shows a recommendation report. Each line suggests a purchase order, a production order or a transfer, based on demand, stock, minimum stock and lead time. You can adjust recommendations and convert them into documents in the same screen. It is net-change in spirit: it compares required with available, and applies order multiples and minimums.

Why each question matters

Planning and procurement methods decide whether an item takes part at all. Lead times decide the dates on the recommendations. BOM accuracy drives dependent demand for components. Inventory accuracy drives net requirements: a system that thinks it has 40 units when there are 4 will plan nothing. Order multiples and minimums shape quantities. Open document hygiene removes phantom demand and supply. A named owner makes the output a decision instead of a report.

Master data questions: 1, 2, 5, 9
Structure and stock questions: 3, 4
Process and ownership questions: 6, 7, 8, 10

What this score does not tell you

It does not measure demand forecast quality, capacity constraints or supplier reliability. B1 MRP is infinite capacity, so it will recommend orders the shop floor cannot build on time. If you need finite scheduling, constraint planning or advanced forecasting, look at add-ons or a separate planning tool. A simple tool is sufficient when your lead times are stable and your product structures are shallow.

Frequently Asked Questions

Where is the MRP wizard in SAP Business One?

It is under the Production module, in the MRP menu, with options for the MRP wizard, scenarios, the recommendation report and forecasts. Names can vary slightly by version, so look under Production, then Material Requirements Planning.

Does B1 MRP consider machine capacity?

No. B1 MRP works on material availability and lead times with infinite capacity. Capacity checks need resources and routings used separately, or an add-on scheduling tool built for B1.

Which item fields does MRP read?

It reads the planning method, procurement method, lead time, minimum stock, order interval, order multiple, minimum order quantity and the warehouse settings on the item. Preferred vendor and prices matter when you convert purchase recommendations to orders.

How often should I run MRP?

Weekly suits many small manufacturers, with daily runs for fast-moving make-to-order businesses. The right frequency is the one at which planners can act on the recommendations. A run nobody reviews has no value.

If your score is low, the usual fix is data cleansing at scale. We can help profile your item and BOM data and flag gaps before an MRP run. Ask for a data profile.

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