Make to order and sales from stock

Hi,
What are the important differences between make to order and sales from stock?
Thanks

Dear Yves,
Make-to-order
A type of production in which a product is manufactured for a particular customer.
Includes both sales order production and engineer-to-order.
Make-to-stock
An inventory of goods that were not manufactured for specific sales orders or projects.
I hope it will clear for you,
Regards,
Murali.

Similar Messages

Sales Order processing - Sale from stock

Dear Gurus,
What are the configuration steps involved in Sales Order Processing- Sales from Stock.
Kindly let me know.
Regards
Prashant Ranalkar

Go with Make To Stock scenario. For configuration details, make a search in this forum.
thanks
G. Lakshmipathi

MTO(Diff between complex make to order and sales order based mass prod)

Hi
We are using MTO...Can anyone tell me what is the Diff between complex make to order and sales order based mass prod in finance perspective?

Hi,
In the case of complex make to order scenario, through MRP, the Project shall be assigned to the sales order. Then there will be milestone billling and all. In the case of mass production MTO, it is only creation of production order for each sales order item and each sales order item shall have sales order cost estimate.
Trust this helps much and do encourage our efforts!
Cheers!
Edited by: Ashok Singh on Oct 28, 2008 6:53 PM

Make to order ,sales from stock

Hi,
What are the important differences between make to order and sales from stock? with respect to availability, scheduling and customer stock
Thanks

Hi there,
Make to order is when you manufacture or procure the material only upon order. Stocks are not maintained for those items in the storage loc. As & when the order comes, a production run is triggered through MRP. After the production, stock is posted as reserved sales order stock. Stock is then made available to fulfill the delivery.
Other items are make to stock. Usually for fast moving or consumer goods, stocks are always mainatined in the plant storage loc. As & when the order comes, availability check is done. If stock is available to meet the delivery date, delivery is proceesed or a confirmed delievry date is proposed basing on the replenishment lead time in availability check.
Regards,
Sivanand

Normal Sales Vs Sales from Stock

Hi to all,
What exactly the difference between Normal Sales Process and Sales From Stock?
Note: No copy paste plz...................!
Thanks
Roddick

Dear Roddick
I dont think there is much difference between these two. Of course in sales, we can distinguish the sale types as Cash Sales, Down Payment Billing, Rush Order, Normal Order etc.,
In the above categories, normal sale order can further be distinguished as Make To Order and Make To Stock scenarios and this has to be decided based on the manufacturing process and the client willingness to opt any of the above.
In both these scenarios, the flow would be Order --> Delivery --> PGI --> Billing.
Still if you need any further clarifications, please feel free to post.
thanks
G. Lakshmipathi

Sales order with ref to make to order and with ref to make to production...

My requirement is as follows:
Material code : Plant specific and MRP activated
In one sales organization the sales order should be created without limitation and with make to order type with ref to above material
Another sales organization the sale order should be created if stocks are available and with ref to make to production with above material.
The availability check rule as no check for first scenario and Individual requirement for second scenario.
can it possible ...........

Hi,
functionality of availabity check is it checks the material as per order if it is avialable then it confirms quantity & if not then u have to procure or manufacture.
Mts scenario works for sales from stock while mto to generate requirement via purchase requisition ir plan order.
however you can configure availabity check for both the scenario by selecting suitable checking group, requirement class, requirement type & schedule lines.
Reward if it helps u
Regards
Dev kumar

Make to order and stock both in one material with consignment

Hi Seniors
FERT Material = XYZ which is being used for Make to Order and Make to stock both.
In case of make to stock scenario from GR u2013 101 and PGI made @ std price. At the time of Consignment 631 mvt. No accounting document is generated. As per my knowledge its fine. No issue.
In case of Make to order scenario for above material.
Q.1   At the time of goods receipt (101 Mvt) from production order, accounting document is generated at the rate of Per unit target cost of production order and no variance shown on production order. Why not accounting document is created at Std price of Material?
Q.2 At the the time of consignment an accounting document generated with following entry.
    Finished Goods Inventory      Dr
    Price difference                   Dr
                    Finish Goods Inventory Cr
Why accounting document is generated at the time of consignment in case of make to order scenario? Pls confirm is this a sap standard behavour or anything wrong with me. As I told earlier that in case of make to stock when we make 631 mvt there is no accounting document generated.
Note: My standard price is on the base of mix costing using two production versions. Every time we create production order in each version.
Regards
Imdad

Hi Imdad
Q1: Why not accounting document is created at Std price of Material?
Check your req class... There is a Field called "Valuation"... your valuation depends on whether you select M or A there... You can decide to valuate based on CK11N std cost estimate or based on Sales order cost estimate / Prod order cost estimate
So, in a nut shell, you can configure the system to generate acc doc at CK11N Std cost also
Q2. Why accounting document is generated at the time of consignment in case of make to order scenario?
In my opinion, your MTO stock is maintained in Table EBEW.. Pls check that... WHen you do GR from Prod order, it resides in EBEW table..
However, when you send it as a cons stock, the link to sales order is lost and your stock is no longer a MTO stock.. Hence, it is valuated at CK11N Std Cost.... If there is a diff between CK11N cost and GR Price, then PRD is generated... Thats why you are seeing PRD in your case
BR, Ajay M

What is make to order and make to stock

what is make to order and make to stock

Hello Nikhita,
Make to Stock: In MTS scenario you can start the production with Planned independent requirements (from MD61...forecast demand without reference to customer)...much before you receive the sales orders from customers..,leter you can deliver this from warehouse to sales orders. This type of scenario you can use for the industries where they have constant demand for thier products in all seasons and products are not changed frequently and also they want to meet the requirements immediattely to delight the customers.
For this you have use approperaite planning strategies in MRP3 view for the finished parts (example 10, 11, 30, 40, 60 etc).
Make to Order:
In MTO you are working against the customer demands (sales orders). Planning and production will be carried out when you get the actual demand from SD (sales orders)... This type of scenation exists in the induatries where lot of products being manufactured and they changed fron one customer to another customer.
Example: Paint industry where you will be having 3000 sheds of colours and each customer comes with thier own requiremnt. You cannot work here with MTS.
Products will be manufactured exclusively for the particular customer and you cannot switch the stock of one customer to anothe customer.
Please rewards your points if helpful.
Regards
TAJUDDIN

Dif bet make to order and make to stock

hi
 what is diffrence bet make to order and make to stock , who impleming this in real time
regards
shivaji

Dear Shivaji
1) MTO
You can use repetitive manufacturing as sales-order-oriented production. The system generates one or more planned orders that have a direct link to the sales order item. The material is manufactured on the basis of these planned orders. The manufacturing process is therefore initiated by sales orders.
If you are using a valuated sales order stock in sales-order-oriented repetitive manufacturing, you create a product cost collector for the individual requirements material (the material that is manufactured for the sales order stock). The costs incurred in the production of the individual requirements material are collected on this product cost collector. The costs can then be analyzed on the product cost collector. You use the functions of Product Cost by Period.
In sales-order-oriented repetitive manufacturing, the sales order stocks are usually valuated. This scenario is used in the automotive industry, for example. The production of each vehicle is triggered by a sales order (or by a sales order item). The costs incurred for each particular vehicle are only of secondary importance. Instead, the focus is on period-based analysis of the costs for all vehicles manufactured during a particular period, whose costs are collected on the same product cost collector. The costs are not collected and analyzed separately for each sales order item.
2) MTS
Choose a make-to-stock strategy, if:
 --> The materials are not segregated. In other words, they are not assigned to specific sales orders.
 --> Costs need to be tracked at material level, and not at sales order level.
You should always use make-to-stock production if you produce stock independently of orders because you want to provide your customers immediately with goods from that stock later on. You might even want to produce goods without having sales orders, if you expect that there might be customer demand in the future.
This means that make-to-stock strategies can support a very close customer-vendor relationship because your objective here is to provide your customers with goods from your stock as quickly as possible. Returns that have passed quality inspection and other unexpected goods receipts can be used for other sales orders.
This does not mean that you have unreasonably high stock levels. You can avoid them by doing one of the following:
 => Create a production plan in advance (in Demand Management) to plan your stock.
 If you make use of this option, you may also want to decide whether sales orders exceeding your plan are to affect production or not.
 => Receive sales orders relatively early on (using scheduling agreements, for example).
Thanks
G. Lakshmipathi

Planning strategy for Both scenario of Make to order and make to stock

Hi
My client having Both scenario of Make to order and make to stock ,so please explain me step by step which Planning strategy is use for following situation
1.Forecast the production quantities for the variants and create the PIRs
2.sales order is created for variants
3.Planned independent requirements should consumed by incoming sales orders
Note:If it is MTO scenario i need sales order reference number in production order
With regards
Laxmipathi

Hi,
You can Define Strategy Group under SPRO>Production>Prod.Planning>PIR>Planning strategy-->define st.Group.
In this step, you group strategies together into a strategy group. You can determine a main strategy as well as up to seven alternative strategies.
The main strategy is proposed in demand management or in sales order management and can be overwritten by another planning strategy defined in the strategy group.
You can allocate the strategy groups to the materials directly in the material master record, or you can allocate the strategy groups to an MRP group and then in a second step allocate the MRP group to the material in the material master record.
Hope it will help you.
Regards,
Mukesh

Make to order and make to stock scenarios in prodcut costing

Dear Co Experts,
I am new to product costing, in product costing there are two way to estimate the cost of the product by using make to stock and make to order.
Kindly tell me the scenario of make to order and make to stock
In make to order scenario what are the minimum configuration steps are required in controlling, PP, MM, and SD.
In make to stock scenario what are the minimum configuration steps are required in controlling, PP, MM, and SD.
How we will defend the costing variant in make to order scenario
I really appreciate for your early response
pls tell me end to end cycle for both the scenarios
Warm Regards
Venkataswamy

Hi
In Cost Planning in Product Costing,We configure Cost variant
Costing variant is a A tool that contains all control parameters for costing, including
parameters that control how cost estimates are executed and the material
prices or activity prices that are used to valuate the costing items.
In Cost Object Controlling category a)by order b)by period c) sale order
a) BY Order,We create Co Production Order which will be used in Make To Order Production.
b) By Period,We create Product Cost Collector which will be used in Make To Stock or Repetitive Manufacturing
c) By Sale Order,We create sale order with linked to Co production order,We can use Make To Order Scenario.
Re: Repitative manufacturing
www.sap-topjobs.com/SpecialPP/samplepc.doc -
Regards
Edited by: Dublin on Oct 19, 2009 10:02 AM

Configuration of Make to Order and Make to Stock Delivery in EWM/ECC

Can anyone please explain the necessary configuration steps that we need to perform for Make to Order and Make to stock execution in EWM.
Also the integration of PP/SD to the kitting process.

hello.
i recommend sticking to the Make-to-Stock scenario. mixing strategies for the same material in the same Plant (much less in the same order) is not really advisable, nor is it practical (or even possible).
when your order quantity of 150 is compared to your available stock of 100, a requirement of 50 is already transferred to MM/PP as you noted. the requirement can already be traced to the sales order. so i believe there really is no need to mix Make-to-Order in the equation.
regards.

How to create stock in Make to order and make to stock segments?

Hi,
Could u please tell me how How to create stock in Make to order and make to stock segments?
Regards,
AS

Hi,
If you are processing production order, use tcode MB31with mvt type 101, system will create stock. This method is same for both make to order and make to stock scenarios.
For initial stock upload you can use 501 or 561 mvt for make to stock and for Make to order use same mvt typt with special indicator E.
Regards,
Dharma

No Purchase order and sales order from trading contact

Hi Gurus,
I am new to this module and i am trying to create a Trading contract. As I understand that the trading contract should create Purchase order and Sales order automatically. But in my case, this didn't happen.
In this regard, I want to know,
i. Are info records mandatory or mentioning the required purchasing and sales data during contract creation is sufficient.
ii. What are the configurations required to do for GTM functionality and which are the points should I check for this.
help me out.

HI
there are some status that is required to be set while you save a trading contract.
your trading contract must be approved or released..only then follow-on docs will be created.
regards,
Yadesh

Automatic account postings (for Intercompany Purchase order and Sales order

Hi all,
I need some help related to the automatic account postings (for Intercompany Purchase order and Sales order)which i can set for the follwoing scenarios. I have looked on the forms and searched alot but not able to a single solution to solve both the pupose. if one scenario works the other doesnt. Please advise.
I have created the master data
Customer receiving--G001
Sales Org.--GXIN
Distr. Channel- 01
Division - 00
Company code receiving - G1
customer supplying- V001
company code for supplying- V1
2 different scenarios
1- Intercompany Purchase order in which a Customer receiving- G001, gets stock replenishment NB purchase order from supplying company V1- GI and GR of stock is done. Biling document for customer receiving G001 is created. But now I need a way to do the opposite side posting at the supplying customer -V001-- this I do using an Idoc which creates a Invoice receipt for creditor(supplying customer) V001.
2. Sales order-- A customer X001 of company code G1 buys stock from the company code V1. the customer G001 of company code G1 bills the customer X001, but the intercompany billing doc/ invoice is created for the customer G001 by company code V1. then now i want an automatic account posting to be created at the supplying customer V001 via idoc.
Can this be achivable via Idoc with automatic account postings.
Please let me know if it doesnt make sense. thanks to all in advance
cheers
Jasmeet

Hi all,
For the Sales order and automatic posting we have created an output type ZR4N- this is creating a batch input session which can be triggered to be processed autmatically.
For the intercompany Purchase order -from Invoice we are creating a different output RD04 (sap standard) which creates invoice receipt at the vendor side.
Rest of the settings are defined using SAP standard functionality within transaction OBCA, OBCB, OBCC, OBCD,OBCE
thanks for viwing the post
Cheers
Jasmeet

Make to order and sales from stock

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