Accounting Entry getting passed in case of Make to Order Scenario

Hi Experts,
In Make to Order scenario, as per my knowledge, when the goods is recieved from Production Order the Accounting entry gets passed is Inventory A/c Debit and Cost of Goods Produced Credit.
But how is Cost of Goods Produced, which is an expense, gets crebited? I am confused, because the above entry will create a credit balance to an expense account. Can anybody clarify this please?
Thanks and Regards,
Sameer Joshi

Thanks for the reply.
Do you mean that at the time of PGI, when the entry is posted to COGS, the amount of COP will also get transferred to COGS and then the whole amount will be posted at PGI?
Thanks and Regards,
Sameer

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Consignment stock, make to order scenario

Hi
We have a material which produce make to stock and make to order also.
In case of make to stock its fine. But when we are testing make to order then following is system behavour.
Action     Mvt Type     Accounting Document
GR     101     No Accounting Document
Consignment     631     Finish Inventory     Dr      at Standard Price
                    Consignment Inventory Change (VKA)     Cr
PGI     633     COGS     Dr      at Standard Price
                    Finish Inventory     Cr
My question is why not accounting document is generated at the time of GR 101 in case of make to order scenario.

Hi
MTO has 3 scenarios in it. (I think you either fall in Scenario 1 or 2)
1. Where the Qty of Prod order is tagged to sales order upon GR from prod order....
The valuation in this case happens at the std cost (CK11N).... Every thiing remains same as in MTS... You get variance as well
2. Where Qty & Value both are tagged to the sales order (Sales order is Cost Object & Stock is Valuated stock)
This is not recommended by SAP and should be chosen only in rare cases...
This scenario pertains to Complex MTO, means totally manufactured based on customer demand.. Like Cars, Boeing Air Crafts, etc
Sale order is a cost object...
Sales order cost estimate is done when sales order is created...
GR is valuated at sales order cost estimate... Variances are calculated based on this cost and actual cost incurred..
PGI and Revenue post to the sales order because SO is the CO object
Finally Sales order is settled to COPA
3. Where Qty & Value both are tagged to the sales order (Sales order is Cost Object & Stock is Non Valuated stock)
This is recommended by SAP
This scenario pertains to Complex MTO, means totally manufactured based on customer demand.. Like Cars, Boeing Air Crafts, etc
Sale order is a cost object...
Sales order cost estimate can be done when sales order is created...
GR is Non valuated... No Variances are calculated because GR is non valuated
Production Order settles upon sales order.. hence, actual cost goes to sales order...
PGI does not generate accounting doc because stock is Non Valuated
Revenue post to the sales order because SO is the CO object
Finally Sales order is settled to COPA
These are the 3 possible scenarios in MTO... There might be a slight variation in Consignment scenario.... I am nt sure if the "No Accounting doc" situation at GR is OK or not
Regards
Ajay M

Account Determinatiion for Direct purchased in case of Make-to-Order Scenar

Hi Gurus,
In Make-to-Order Scenario, when we procure materials externally, the system directly posts to Production order or Sales order as the case may be. This will not go to Inventory account.
I would like to know how this is integrated in SAP. Where is the integration point for this.
Correct answer will be suitably rewarded
Regards
Surya

hi,
while making purchase order u have to enter a glaccount in account assignment tab page if ur gl a/c no. is related to co- object assignment then it require th co assignment object this is the area of integration of order with mm & fi
hope this could be helpful.
plz reward points.

Getting error while doing make to order scenario

Hello Sap Gurus,
While doing make to order scenario(strategy 20),when i am giving customer requirement through md81(using reqmt type KE),i am getting the following error,"Receiver category is not allowed by settlement profile SD1."
Could you guys help me in solving this error.In settlement profile SD1 i have checked that valid receivers material,sales order are kept as optional,then also getting error.

Hi Jitendra
Can u confirm what setting is kept against reciever "sales order"? Is it kept as settlement required or optional? Ideally it should be "required"
Also provide the error message number which u are getting
Rgds

No accounting documents posted for Make to Order Scenario

Hi!
We are following the make to order scenario, but for product costing following product cost by order.
When goods receipts/goods issue are posting ( movement types: 101E & 601E), there are no accounting documents got generated.
can you suggest any one what I have to do?
I am OBYC settings are ok.
regs,
ramesh

Hi
Check the account assignment category in the PO and check for the relevant GL account assignment.
It is purely the assignment.
Also check the field status settings for the movement types.
Reg
Suresh

ATP - Make to Order Scenarios

Can anyone advise how ATP works for make to order scenarios? In the first place, shd there be ATP for make to order scenarios? Since the production order created is associated directly with that particular sales order.
1. w/o assembly processing
I noticed SO for this case is always confirmed based on lead time towards customer. However, any date changes in the production order does get updated into SO schedule lines. Why is this so? In the event if there's any delay, material availability shd be change due to change in order completion date. Why is different from case with assembly processing?
Thanks
Peter

ATP:
Available-to-promise is the quantity of a material or part still available to MRP which can be used for new sales orders.
Available to Promise. It is the process of checking the available quantities of a material. The ATP quantity is equal to warehouse stock plus the planned receipts (incoming stocks). ATP takes in to account all movements into and out of the warehouse.
If selected, it can check the stock examined for ATP that can be safety stock, stock in transfer, stock in quality inspection, & blocked stock, although the planned receipts & planned issues of the stock associated with ATP may be purchase orders, purchase requisition, planned orders, production orders, reservations, dependent reservations, dependent requirements, sales requirements & delivery requirements.
The ATP quantity is calculated according to the following formula: ATP quantity = warehouse stock + planned receipts - planned issues.
JP

Customer number not in the inspection lot for a make to order scenario

Hi All,
I know that standard SAP will get the Customer number into Insp. lot only for insp. types 10/11/12. I am wondering if someone know a way to get the customer no. into insp. lot for insp. type 04 where the material is make-to-order scenario and the Production/Process order has the Sales order and customer no. without activating User-exit. The quality users want to be able to see the customer no. in insp. lot without having them to go to process order.
It makes no sense to me why the customer no. is not brought into insp. lot when that is available in the Prod/process order, which can further be used to select the customer specific insp. plans for 04 insp. type Insp. lot without using Variant configuration.
Any light on this topic is appreciated.
Thanks.

Hi Srikant,
I guess.........
Normally the inspection lot refers the triggering document that are the trigger cause for them.
- Inspection type 01: - Purchase Order and GR material document.
- Inspection type 03: - Pro. Order Number
The same way...
The inspection type 10\11\12 are purely related to the SD, and directly integrates QM and SD. Hence in the inspection lot for the inspection types directly integrated to SD, it will furnish the Sales order number \ Customer.
But the inspection type 04 is purely have it's relation to Production process. So it will have the details related to integrations it has i.e. the "Pro. Order." Hence it integrates QM-PP, it have the data related to PP (Pro Order), not the SD's one.
But I think one way you can achieve it,
Assign the Customer number also to the inspection plan along with the Material. So I think at the time of assigning the inspection plan to the inspection lot, it will refer the Customer number also and will display the Customer number along with Task list Group\Group Counter, in the inspection specification screen in QA03/02
Regards,
Shyamal

Make to order Scenario...

Hi Friends,
I have maintained all required fields for make to order scenario.....
In MRP 3, Strategy Group- 20
in house production time- 2 days
But when I punched sales order , in schedule line tab of order item .....order quantity in getting confirmed before proceeding to further process in make to order ( Production order , Material Planning and before production order is getting confirmed ).
My problem is that in make to order scenario, sales order quantity is getting confirmed before proceedings further.
So kindly advised as to be done to get rid of this problem
Thanks in advance
Shailesh

Hi Shailesh,
Please check the configuration settings in the IMG for Availability check.
You check have maintaining availability checking group 01 or 02 in the Material master.
Have you assigned Checking rule AE -SD order; make-to-order stock for checking group 01 or 02 in the IMG
Spro>sales and distribution>Basic functions>Availability check and transfer of requirements>Availability check>Availability check with ATP logic/Against planning>Carry out control for availbility check.
I hope it will help you,
Regards,
Murali.

Make to order scenario (GR Nonvaluated indicator is on by default)

Hello Friends,
I am working on make to order scenario. I have assigned planning strategy 20 to the material. Against this material i created one sales order. Now with reference to this sales order i am creating the production order by transaction CO08. While doing these when i am checking under goods receipt tab, i am finding that GR Nonvaluated indicator is on by default. Because of this when i am doing the GR against these production order, system is not generating any accounting documents.
I am unable to find how the GR Nonvaluated indicator under Goods Receipt tab in production order is on by default, in make to order scenario.
Kindly share your valuable input on these.
Thanks and Regards,
Jitendra Chauhan

Check
Re: GR nonvaluated flagged automatically

How to show the internal batch number for order in make to order scenario

Hi !!!
Gurus!!
I am working on make to order scenario .For delivery of order may I see the batch no.of esch order.
How system will get the internal number batch.
I have config. batch management.
What should be the next process.
Regards,
Nitin

Hi,
QI am working on make to order scenario .For delivery of order may I see the batch no.of esch order.
A. Yes you can see batch number for each order
QHow system will get the internal number batch.
A. there are two possiblities assign you batch number at production order before release or assign batch or each GR at the time of executing GR transaction.
QI have config. batch management.
A.In Material master you also have to tick for batch managemnt relevency
QWhat should be the next process.
A. Consult again if any thing missing
Regards,
Syed

Make to Order Scenario Process Flow

Hi Friends -
I am looking for simple Make to Order scenario with BOM Components with Routing.
The process flow I want to execute -
1. Create a Sales Order for a Finished Product (Product should have a BOM for Production)
2. Do the product Materials Planning for the Sales Order through MD50
3. Get all the dependent material requirements (both for products as Planned Order and also for BOM Components - all the BOM components should also be planned)
4. Convert Planned Order for Product to Production Order
5. Convert Planned Orders for BOM components to Purchase Requisition
6. Confirm Production Order
Pls correct me if I my process flow is wrong or requires modification.
I will appreciate if you can validate the above process flow and guide me to execute the same in the system.
Pls help me on configuring the system and setting up the materials and related master data for the same.
Thanks in advance
Purnendu

Dear GSL - Pls check the following details
1. I have created a Material Master data for Finished Product (FERT).
2. I have assigned Item Category Group - 0004, and General Item Category group as 0004 ( Make to Order / Assembly).
3. I have assigned MRP Type PD in MRP 1 View and Strategy Group 20 (Make to Order Production) in MRP 3 View.
4. Now created a Universal (Type 3) BOM for the product with one material component.
5. Now also created a Routing for the Material with two operations having PP01 a control key.
6 When I try to create a Sales Order for the finished material it is giving message
Configuration not possible for material 747 : Reason 3 --> Help
Message no. V1360
Diagnosis
This may have been caused by one of the following:
1. The configuration profile for the material allows or requires the bill of materials to be exploded during order processing. However, a plant has not been specified in the item.
2. The configuration profile of the material allows or requires the bill of materials to be exploded during order processing, but the order quantity in the item must be greater than 0.
3. A configuration profile has not been maintained
or
A configuration is not permitted for the material
or
4. The configuration profile of the material allows or requires the bill ofmaterials to be exploded during order processing. However, the system could not determine a date because important data is missing from the item (see incompletion log).
This message is also coming in the Incompletion log f the sales order.
I have not checked the Configurable Indicator for the material in the Basic Data 2 view of the materials master, but still the message related to Configuration is coming.
Pls help e on this.
Thanks and warm regards
Purnendu

Customer Returns Process - Make to Order Scenario

Dear Experts,
In Customer Returns Process for make to Order scenario, I am using SAP Standard Documents and Item Categories.
For standard Sales Order the Requirement type used is Customised say ZHS and Batch Numbers are to be used which are flowing from PPModule.
While creating Returns order same Requirement Type is triggered i.e.ZHS and while creating Returns Delivery PGR is not happening untill the Requirement is changed to SAP Standard 011 / KSL in Returns Order.
How to solve this issue.
Regards
Hari

Hi
The requirements can be triggered on the basis of your configuration which i had replied
like in
MG
Sales and Distribution
Basic functions
Availability check and Transfer of Requirements
Transfer of requirements
Determination of requirement types using transaction
Item categoryPDReq typeRequirement class2
I also faced the same scenario in MTO managed in batches for me what i said has solved my issue. In your case may be different if you can provide details so that the forum can help you
regards
Prashanth

Configuration for Make to Order Scenario

Hi!
We are using make to order scenario, but we want to follow product cost by production order, not product cost by sale order.
alway our costs should acrrue to production order.
What are steps we need to check and do..
In requirement class (40), we need to change any thing ?
regs,
ramesh

Dear Ramesh,
Dont remove any account modification indicator
Just keep blank consumption posting field.
Regarding valuation, if you keep it as M=Valuation related to particular S.O
A=Valuation not related to a particular S.O(MTS)
So, you can keep this field as blank(i.e. Non-valuated stock)
Rgds
Murali. N

Make to Order Scenario problem

i want to configure a make-To-Order Scenario
i have create an item category ZTAK (for Make to order items) ... and assigned it to my sales document type and the Material item category in sales view 2 is 0001 (Make to order)
when creating the sales order i got the following message
Transaction ZTAK PD is not defined
Message no. V1347
Diagnosis
This combination of item category ZTAK and MRP type for material PD is not allowed.
System Response
The system does not allow further processing of this item.
could any one help

Hi,
Configuration steps:
 Create material by specifying item category group as 0001 = Make u2013 to u2013 order (Normal item)
In MM01 Basic data tab, General item category field [0001] = Make u2013 to u2013 order, 0002 for configurable
material
Make u2013 to u2013 order checking group for availability check should be [02] = Individual requirements in Sales:
General/Plant tab.
 Go to VA01 and raise the sales order by specifying this material that we created in the previous step
Item category is TAK
Schedule line category = CP
Requirement type = KE [Sales order Header  Procurement  Requirement field]
KE = Individual customer order without consumption
(For standard items item category group = NORM)
System determines requirement type 041-order/delivery requirements. This requirement type points requirement
class where we can control whether the system has to carryout TOR, Availability check, and Product allocation
functions.
NOTE: Make sure that controlling area and fiscal year defined and maintained.
 Save and Exit
 Go to MB1C to initialize the stock
Movement type [561]
Specify special stock [E]
E = Receipt without purchase order in unrestricted sales order stock
Specify the sales order number [ ] and item number [10]
Specify the material with quantity
 Save and Exit
 Go to MMBE and check the stock balance
 Go to VL01N do the delivery
 Go to VF01 and raise the invoice
Hope this helps.
Regards

Which fields of material maintain in make to order scenario through bdc

HELLO !!!!!
GURUS !!!
I am working on make to order scenario.
Here is batch management.
I am giving data for uploading so for that which fields must be filled from
basic data to costing .
Could you give me some ref. on this topic.
Regards,
Nitin

Hi,
Its like I have given for the Raw Material what are all the required fields and this is as per the scenerio which we follow and i think this helps you..
MBRSH     Industry Sector
MTART     Material Type
DYTXT
WERKS     Plant
LGORT     Storage location
MAKTX     Material Description
MEINS     Base unit of measure
MATKL     Material Group
SPART     Division
BSTME     Order Unit
EKGRP     Purchasing Group
KAUTB     Automatic PO
XCHPF      Batch MAnagement
EKWSL     Purchasing valu key
WEBAZ     GR Processing Time
USEQU     Quota arrangement Usage
DISMM     MRP Type
DISPO     MRP Controller
DISLS     Lot Size
BESKZ     Procurement type
LGFSB     S.Loc for Ep
PLIFZ     Scheduling margin key
FHORI     Planned Delivery Time
RWPRO     Coverage Profile
STRGR     Strategy Group
VRMOD     Consumption mode
VINT1     Backward Consumption Period
VINT2     Forward Consumption Period
MTVFP     Availability Check
SBDKZ     Individual/Collective
BKLAS     Valuation Class
VPRSV     Price Control Indicator
VERPR     Value/Price
EKALR     With Qty Structure
Hope This Helps you.. is it clear
Regards,
Sravanthi
Edited by: sravanthi nemani on Dec 29, 2008 1:38 PM

Accounting Entry getting passed in case of Make to Order Scenario

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