Make to Order cycle

Dear Experts,
I want to do MAKE TO ORDER for production (Discrete). So can you please give me the complete cycle for MTO from SD, MM, PP & FICO involment in the cycle.
Thanks & Regards,
venkat.

Hi,
Please find below Make to Order Cycle.
1. Creation of Sales Order - VA01
2. MRP against Sales ORder - MD50
3. Convert the planned order into Production / Process ORder
4. Preliminary Cost Estimate for ORder
5. Release the Order
6. Conversion of Purchase requisition into Purchase Order
7. Creation of Purchase Order - ME21N
8. Goods Receipt against Purchase ORder - MIGO
   Accounting Entry: Rawmaterial A/c dr
                       To Goods Receipt/IR
9. Confirmatin of ORder - COR6N
10. Order Report - KKBC_ORD
11. Goods Receipt for Order - MB31
    Accounting Entry: Finished Goods a/c dr
                         To Production Order
12. Order Report KKBC_ORD
13. Stock Overview Report - MMBE
14. Outbound Delivery PGI - VLO1N
    Accounting Entry: Finished Goods COS a/c dr
                        To Finished Goods
15. Billing - VF01
    Accounting Entry: Customer A/c dr
                        To Sales Revenue
Period End Activities
16. Overhead Calculation - KGI2
17. When Order Technically completed:
    Variance Calculation for ORder - KKS2
18. Settlement of Variance - KO88
    Accounting Entry: Finished Prod PV
                        To Production Order SEt
Regards,
Durga

Similar Messages

PP Make to Order Cycle.

Hello,
Client Input:
Currently, we create finished product such as 11KG LPG filled bottle by using a manual Production order based on BOM with basic materials such as Bulk LPG, empty bottle and refilling charges per KG. Our requirement is to automate the assembly or production of the finish good(LPG filled bottle) in background during Delivery/Goods Issue (if possible) wherein components(Bulk LPG, empty bottle and refilling charge) are automatically consumed based on BOM.
        for example, the customer placed an order for an 11KG filled bottle. the person creating the order will just input the filled 11KG LPG bottle even without inventory, if the sales order is ready for delivery, the system will automatically assemble the 11KG filled bottle based on BOM during Goods Issue. However, the question is what will happen to the finish product that was issued if we suddenly decide to cancel the delivery, will the system return the product as finish good and we need to manually reverse it to return the raw components?
In reference with the above requirement, kindly let me know, is it possible to auomate the process so as to create the Prodcution order automatically.
Also in case of cancellation of Sales Order,   what are the steps to be followed?
regards..chaitanya

Hi,
Pls. go through the following link :
[Make to Order Cycle|http://www.sap-img.com/production/discrete-manufacturing-the-made-to-order-cycle.htm]
Hope this helps you somewhat.
Regards,
Tejas

Delivery not created in make to order cycle

Hi
i am in the make to order process scenario and facing problems while creating a delivery after production order has been confirmed. The steps followed are
1. i create an order with M1 and quantity 100 - T code : VA01
2. i create a sales order BOM for the sales order created above and using material M1 - T cose : CS 61
3. This is followed by a production cycle - planned order, production order and confirmation with lot size of 7.
4. as one production order of size 7 is confirmed, the stock is generated of quantity 7 for the material M1. using MMBE i can see the stock being created.
5. Now as i go and try and create the delivery against order created in step 1, i get the error and that "No schedule lines due for delivery up to the selected date".
6. When i check my order in display mode, under schedule line it shows M1 with order quantity as 100 and confirmed quantity as 0.
Could you please advise if after the confirmation of production order, the schedule line in order will show quantity 7 and if i can delivery against it. Or is there any other way of creating the delivery.
Thanks

Hello,
In MTO scenario the following happens:
1. Sales Order is created - standard requirements type determined is KE which fetches requirements class 040. The requirements class 040 has controls for MTO & special stock indicator will have entry as "E-orders on hand".
2. After MRP is run the system will transfer the requirements to PP, a planned order will be created which is then converted into a production order.
3. After running the production cycle the goods will be transferred to the finished goods storage location.
4. Now when you check in the transaction code MMBE the system will show the material stock & under the sales order stock only.
5. But when you check the sales order -- line item schedule line, the system displays the confrimed quantity as "zero".
Explanation:
You created sales order for item A - 100 Quantities. Production was completed for 20 quantities. System shows sales order stock of 20 quantities only.
When you had created a sales order for item A the system after running the availability check would have determined a delivery date by way of which it would have shown you say 2 different schedule lines as under
Delivery Date.............Order qty............Rounded Qty...........Confirmed Qty
01/05/2009...................100......................100............................0
15/05/2009.....................0.........................0.............................100
The second date the system determines taking into consideration the inhouse manufacturing time specified by you in the material master (MRP2 screen) & the other settings which aare applicable for the checking group specified in the material master.
On 15/05/2009, if you create a delivery, the system will allow you to create the delivery irrespective of the stock in the plant. But at the time of post goods issue you will face a quantity deficit error.
If the goods are received in the finished goods storage location before 15/05/2009 say on 10/05/2009, the system will not update the schedule line automatically & when you try to create a delivery the system will display the error "no schedule lines due for delivery".
Solution:
Transaction code VA02 - select the sales order number - double click on the line item - go to schedule lines - here click on the button "Item Availability" or press "Ctrl + F5" to run the availability check. As you have stock of 7 quantity, the system will display 7 quantity on the curretn date. Select the option delivery proposal to continue. Now the system will show 2 schedule lines as under
Delivery Date.............Order qty............Rounded Qty...........Confirmed Qty
01/05/2009...................100......................100............................0
10/05/2009.....................0.........................0..............................7
Save the sales order & then create a delivery. The system will not give any error.
Note: You have to manually confirm the quantities for a make to stock sales order in case if the goods are received before the delivery date specified by the system.
With best regards,
Allabaqsh G. Patil
Idhasoft Ltd.

In make to order cycle semifinished costs are not appearing in itemisation

Hi
We are facing a problem in Make to order. When a production order is created with respect to a sales order, semifinished costs are not appearing in Itemisation or cost component structure of Production order.
In other cases like make to stock and planning with final assembly costs are appearing. we are checking costs at CO02 - goto menu- costs - itemization.
Please provide us solution for this problem.
Thanks and regards,
Deepa

Hi
Please check 'Cost component Structure' Attribute details data for the semifinished component.
In that chek for 'Rollup cost' and also check for 'Filter Criteria for cost component views on Itemization' properly.
Regards
Laxmiprasad
Apart from above pls check for semifinished product in material master in costing1 view for material origin check box, check it if not selected.
Regards
Laxmiprasad
Edited by: Laxmiprasad Pagidala on Jan 22, 2008 2:03 PM

PROBLEMS IN MAKE TO ORDER PRODUCTION CYCLE

Dear Sir
When i m making make to order cycle for a material i hv maintained stratergy 20 for the material.then i created sales order for that material.then i run MRP using MD50.Then iwent to MD04.Then i converted planned order into production order it is giving me the error
"YOU CAN NOT MAKE ASSIGNMENT TO MAKE TO ORDER STOCK"
What needs to be done to solve this problem?
With Regards
Debasish

Dear ,
When you are creating Sales Order in VA01 , you should use Item Categoery as MTO order categoery .This is the link between the Production Order Created by MD50 while running MRP and Sales Order .Generally , this item categoery will assingned to a requirement type and requireoment class.Both this requirement class and requirement type will be assinged to your planning strategy-20 in Define Planning strategy and strategy group in Customising .If this is missed , then there will not be any refernce of Sales Order in the Production Order .
So check the right item categoery in the sales order and check what requirement type /requirement class u have assinged in the planning strategy group in the configuration .You will get the same error if you try to create the Production order directly by co08 if item categoery is not be assinged in the sales order as well subsequent link in the planning strategy .
Regards
JH

Make to Order

Hi Gurus, Our problem is as follows,
We have two plants A and B. some materials are produced in A and some are produced in B. we use strategy group 22 for make to order production. materials are always delivered from plant B. so when we load a sales order we always enter B as plant as it is delivered from B.As some materials are manufactured in Plant A and they start manufacturing only when we recieve a sales order as it is make to order material.
1)material master settings for Plant B and Plant A have strategy group 22 in MRP3 screen.
2) MMR (Material master) for Plant B in MRP 2 is External procurement and special procurement key is stock trnasfer from Plant A to Plant B.
3) MMR for Plant A in MRP2 Screen is Inhouse Production (E) and MRP3 screen has strategy group 22.
Problem arises when we load a sales order it creates a production order in Plant B and production people in Plant B complain to reload in Plant A as that material is manufactured in Plant A.
And as i said before the delivering plant is always Plant B. so if we change the plant from B to A in sales order it is ok for Production cycle but in reality Plant B is delivering plant.
So gurus, am i missing any settings or need to check any thing in MTO configuration. How to avoid this problem as this happens always.
Also as suggested in earler thread i have tried changing in MRP2 screen for special procurement as 80 (production in alternate plant) but still it did not solve problem.
Is there any setting that we can restrict a production order to a particular plant so that when we load sales order with plant B and production order raised in Plant A.
Please if anyone have come across similar situation before advise me gurus and will be thankful to you.
Thanks in advance gurus,
Nathan.

Hi Nathan,
Just a quick thought, check in the order BOM, the special procurement key maintained.
Check & revert.
Regards,
Vivek
Added
In Plant A: MMR setup
- Set the Mixed MRP Indicator = 1 (Required setting)
- Set plng strategy as 40 (Just a suggestion)
In Plant B: MMR setup
- Special Procurement type = 40 {Stock Transfer from Plant A}. (Required setting)
After the above setup, run MRP & it should be OK.
Hope the above resolves the issue.
Edited by: Vivek on Feb 22, 2009 12:04 PM

Make to order issue

Hi all,
I am trying make to order scenario but i am not getting the desired result. I created a sales order, run the MRP and when in MD04, i want to convert the planned order into production order then at that time the system in the "additional Data for MRP element" screen - in the field besides planned order no. shows me "make to stock". I am working for MTO scenario. The following are the settings i have maintained:
1. In MMR item category group is "0001"
2. In MRP3 screen the strategy group is "20"
3. VOV4 item category determination i have used item category as "TAN" only.
4. In IMG - sales & distribution - basic functions - AVC & TOR - Transfer of requirements - define requirments class. Here I have selected "040"
5. In define requiremen type i have used "KE -
040"
6. Determination Of Requirement Types Using Transaction - here for item category "TAN" & MRP type "PD" i have selected as 0 - i.e strategy group will come into picture.
I want clarification on the following issues:
1. Which requirements class to be used and what are the settings in the "requirements class". I want field wise entry.
2. Which is the requirement type to be used and where else this requirement type is to be assigned. I want for both SD & PP assignments.
3. Is there any setting to be done in AVC?
4. Is the item category determination correct? i.e i have used TAN for item category group "0001". Is it correct or do i have to assign any other item category.
5. Is the strategy group correct.
6. What are the settings to be done from the PP point of view.
7. In MTO say sales order is created for 20 pc and while generating the production order is it possible to create for 25 pc keeping in mind that 5 may be scrapped.
8. When the planned order is converted to production order and if there is shortage of raw material then does the system ask for the sales order no. while creating the "PR" and the "PO"?
I want the following results out of MTO:
1. when i convert the planned order into a production order the system should show the sales order no. so that the production order can be traced back to the sales order.
2. Suppose today I create sales order for item "A" 10 pc. 5 are anyhow in stock, so i confirm those 5 pc for that sales order and production order will be created for 5 only. Say after 10 days when the remaining 5 pc come to stcok then the system shoud automatically confirm those 5 pc for the original sales order only against which the production order was created.
3. I want to evaluate the fin. goods stock as per the sales order. Is it possible.
Efective answers will be highly appreciated.
Regards,
Allabaqsh G. Patil
Message was edited by:
allabaqsh patil

dear patil
please gothrough this
Make to order Scenario
1. Make-to-order production is a process in which a product is individually manufactured for a particular customer. In contrast to mass production for an unspecified market where a material is manufactured many times, in make-to-order production a material is created only once though the same or a similar production process might be repeated at a later time.
2. You can use make-to-order production: (a) For branches of industry or products where a small quantity of products with a large number of different characteristics are manufactured (b) When a product has to be assembled particularly for a sales order.
3. Stock keeping is not usually carried out for products that are made to order. In companies using make-to-order production, the demand program only determines the production area, in which various variant types are produced. Depending on how you track the costs associated with make-to-order production, there are two ways to process make-to-order items during sales order processing.
(a) Make to order using sales order
(b) Make to order using project system (not relevant for SD application)
4. for make to order production using the sales order, all costs and revenues involved for an order item are held collectively at that item. A particular rule is used that can be changed manually to transfer costs to profitability analysis.
5. make to order production is largely a production planning configuration. It is also controlled by the requirements type, which is determined by three things
the strategy group (MRP 3) in MMR
the MRP group (MRP1) in MMR
the item category and MRP type (MRP 1)
6. Make-to-order production is controlled by the requirements type. The requirements type is determined on the basis of the MRP group (MRP1) and the strategy group (MRP3) in the material master record. In addition, a plant must be assigned for make-to-order items in the sales order.
MAKE TO ORDER PRODUCTION (PROCESS FLOW )
First Create a material with MM
Basic data1:
Give Material name : Cycle
Material group : 010
Division : MA
Net Weight : 10 Kg's
Gross Weight : 10Kgs.
Sales: Sales org.1 :
Base Unit of Measure : EA
Delivering Plant : RAMA
Output Tax : 1 ( Full tax)
Sales: General/Plant :
Availability Check : 01 ( Daily Requirements)
Trans.,group : 001
Loading Group : 0003
MRP 1:
Mrp Group : 020 ( Make to Order Production)
Mrp type : PD (MRP)
Mrp controller : 000
Lot size : EX ( Lot-for-Lot order quantity)
MRP 2:
Inhouse Production : 1
Schedule Margin Key : 000
Forecasting:
Forecast Model : D (Constant Model)
Accounting 1:
Price control : V ( Variable Price)
Variable Price : 4000
Price Unit : 1
Then enter & Save.
Material 769 created.
Create a Sales order with VA;
Order type : OR
Sales Organization : RAMA
Distribution Channel : RA
Division : MA
Sales Office : RAMA
Sales Group : RAM, .............. Enter
Sold to Party : 6000000000
PO number : 55 , PO Date : 04.06.2007.
Item Overview Tab:
Material 769, Quantity : 100
Enter & Save the Document.
Sales Order 8212 Created
Create Production Order with CO:
Enter Sales order number: 8212, Item No. 10
Order type : PP, Enter
Click on FLAG,
Select Generate Operation and enter NO,
save the Document.
Production Order Created : 60002725
Confirm the Production Order with CO15.
Enter Production Order No. 600075 and save the Document.
Now the confirmation Order will be saved.
Create Goods Receipts with MB31.
Movement type : 101
Order : 6002725
Plant : RAMA
Storage Location : RAMA
Enter and Save, you will get Document Posted : 50000068931posted.
Check the Stock Position with MMBE
Material : 769
Plant : RAMA
Storage Location : RAMA
Execute (F8), Here we can see the stock at Sales Order Stock.
Create Delivery with VL01N, Billing with VF01 and Post to Accounts
rewards if it helps
siva

Make to order plant to plant

Dear All,
The scenario there is 2 plant the 1000 and 2000....and the 1000 is trading company and 2000 is manufacturing company....so now when the customer specefic order come with his specefic requirment in 1000....and 1000 gives the requirment to 2000 to produce it and send it to 1000 and after 1000 receive the goods and send it to the customer.....Now how we going to maitain the sales order stock? what i am doing is goin to make the order in 1000 .....then make the purchase order in 1000 for vendor 2000 then 2000 make the production and deliver to the 1000 and 1000 makes the GR and recieve the goods. So in this there is no sales order stock....coz its coming in the storage location and any one can sales this material to any one...so there is no track?> so can ny one tell me that how we r goin to maintain the sales order stock? Please throw some light on it......
Regards,
Mohsin

HI Mohammed
First Create a material with MM
Basic data 1:
Give Material name : Cycle
Material group : 010
Division : MA
Net Weight : 10 Kg's
Gross Weight : 10Kgs.
Sales: Sales org.1 :
Base Unit of Measure : EA
Delivering Plant : RAMA
Output Tax : 1 ( Full tax)
Sales: General/Plant :
Availability Check : 01 ( Daily Requirements)
Trans.,group : 001
Loading Group : 0003
MRP 1:
Mrp Group : 020 ( Make to Order Production)
Mrp type : PD (MRP)
Mrp controller : 000
Lot size : EX ( Lot-for-Lot order quantity)
MRP 2:
Inhouse Production : 1
Schedule Margin Key : 000
Forecasting:
Forecast Model : D (Constant Model)
Accounting 1:
Price control : V ( Variable Price)
Variable Price : 4000
Price Unit : 1
Then enter & Save.
Material 769 created.
Create a Sales order with VA;
Order type : OR
Sales Organization : RAMA
Distribution Channel : RA
Division : MA
Sales Office : RAMA
Sales Group : RAM, .............. Enter
Sold to Party : 6000000000
PO number : 55 , PO Date : 04.06.2007.
Item Overview Tab:
Material 769, Quantity : 100
Enter & Save the Document.
Sales Order 8212 Created
Create Production Order with CO:
Enter Sales order number: 8212, Item No. 10
Order type : PP, Enter
Click on FLAG,
Select Generate Operation and enter NO,
save the Document.
Production Order Created : 60002725
Confirm the Production Order with CO15.
Enter Production Order No. 600075 and save the Document.
Now the confirmation Order will be saved.
Create Goods Receipts with MB31.
Movement type : 101
Order : 6002725
Plant : RAMA
Storage Location : RAMA
Enter and Save, you will get Document Posted : 50000068931posted.
Check the Stock Position with MMBE
Material : 769
Plant : RAMA
Storage Location : RAMA
Execute (F8), Here we can see the stock at Sales Order Stock.
Create Delivery with VL01N, Billing with VF01 and Post to Accounts.
http://www.sap-basis-abap.com/sapsd.htm
Reward if useful to u

Planning of Dependent Requirements for BOM Components in Make to Order scen

Hi Friends - I want to execute a full cycle Make to Stock Scenario with Materials planning using MRP.
The scenario will include 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
To execute this I have done the following
1. I have created a Material Master data for Finished Product (FERT).
2. I have assigned Item Category Group - NORM, and General Item Category group as NORM
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. Now created a standard sales order for the product.
7. Executed the MD50 for the Sales Order Item.
Now where do I find the BOM components for this material in the Sales Order?
After executing the planning Run MD50 I am only getting the requirements for Product only. I can't see any dependent requirements for the BOM components.
How do I make sure that the BOM components are also planned while the product is planned?
I have checked the component Stock Requirement List - there are no requirements generated from the Sales Order Product BOM.
Pls help me on this. How to do this so that the raw material components are also planned?
Thanks
Purnendu

Hi Dhaval, Sandeep, Ashok - Thanks a lot for your replies.
I have checked the Planned Order Created through Planning Run.
If I click on the Components Tab I am getting following message
No material components were determined
Message no. 61027
Diagnosis
Until now, no BOM explosion has been carried out or no BOM has been created for this material yet.
Procedure
Either explode the bill of material for this material, or
create the components manually by processing the planned order in change mode.
If I try to explode the BOM through Header Menu - Edit> Explode BOM
I am getting the same message.
If I click on the Bill of Material Tab - I am getting the same above messge.
Ashok - I have tried both the Selection Method -
Nil - Selection by Order Quant.
1 - Selection by Explosion Date
But with no effect.
Waiting for your advice.
Thanks and warm regards
Purnendu

Make to order /make to stock

hi
plz. tell me the detail process flow of both the scenarios i.e. make to order and make to stock with TCODES.

Hi
The difference between MTO and MTS is
MTO--> Make to Order Production is the process where the prodcution order is triggered from a Sales Order. Ex: The Prod process will start only after receiving the sales order from the customer. In this case the product could be customer specific only (Variant)
MTS--> MTS scenario can be accomplished by the following settings
Need to use strategy group 20 in material master MRP view-Stretgy group 20 is assigned to strategy 20
Strategy 20 is assigned to Requirement type KE (Individual customer requirement)
Requirement type KE is assigned to requirement class 040 (Indiv.cust.w/o cons.)
Requirement class has all the parameters where we can define Prodcution order type that will be used to create th prod order. The above link needs to be established.
Also the MTS can be achieved using Sales Order schedule line catagory which will be assigned to Requirement type/class. Item category is assigned to Reqtype/class and the Item category is maintained in the material master.
You can use any of the baove config settings.
For MTO --> you just need to have all PP cycle settings in place nothing special needed as it is a plain PP cycle.
Please let me know if you need any more specifics or have any perticular questions.
SAP online documentation has also all the details that you need
Thanks
Deepak

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

Make to order(MTO) and make to stock(MTS)

Hi friends
Please Send the details about Make to order(MTO) and make to stock(MTS) process and configuration .if u have any documents pls send to my mail ID : [email protected]
Regards
Balu

dear balu
MAKE TO ORDER AND MAKE TO STOCK notes
Make to order Scenario
1. Make-to-order production is a process in which a product is individually manufactured for a particular customer. In contrast to mass production for an unspecified market where a material is manufactured many times, in make-to-order production a material is created only once though the same or a similar production process might be repeated at a later time.
2. You can use make-to-order production: (a) For branches of industry or products where a small quantity of products with a large number of different characteristics are manufactured (b) When a product has to be assembled particularly for a sales order.
3. Stock keeping is not usually carried out for products that are made to order. In companies using make-to-order production, the demand program only determines the production area, in which various variant types are produced. Depending on how you track the costs associated with make-to-order production, there are two ways to process make-to-order items during sales order processing.
(a) Make to order using sales order
(b) Make to order using project system (not relevant for SD application)
4. for make to order production using the sales order, all costs and revenues involved for an order item are held collectively at that item. A particular rule is used that can be changed manually to transfer costs to profitability analysis.
5. make to order production is largely a production planning configuration. It is also controlled by the requirements type, which is determined by three things
the strategy group (MRP 3) in MMR
the MRP group (MRP1) in MMR
the item category and MRP type (MRP 1)
6. Make-to-order production is controlled by the requirements type. The requirements type is determined on the basis of the MRP group (MRP1) and the strategy group (MRP3) in the material master record. In addition, a plant must be assigned for make-to-order items in the sales order.
MAKE TO ORDER PRODUCTION (PROCESS FLOW)
First Create a material with MM
Basic data1:
Give Material name : Cycle
Material group : 010
Division : MA
Net Weight : 10 Kg's
Gross Weight : 10Kgs.
Sales: Sales org.1 :
Base Unit of Measure : EA
Delivering Plant : RAMA
Output Tax : 1 ( Full tax)
Sales: General/Plant :
Availability Check : 01 ( Daily Requirements)
Trans.,group : 001
Loading Group : 0003
MRP 1:
MRP Group : 020 ( Make to Order Production)
MRP type : PD (MRP)
MRP controller : 000
Lot size : EX ( Lot-for-Lot order quantity)
MRP 2:
In-house Production : 1
Schedule Margin Key : 000
Forecasting:
Forecast Model : D (Constant Model)
Accounting 1:
Price control : V ( Variable Price)
Variable Price : 4000
Price Unit : 1
Then enter & Save.
Material 769 created.
Create a Sales order with VA;
Order type : OR
Sales Organization : RAMA
Distribution Channel : RA
Division : MA
Sales Office : RAMA
Sales Group : RAM, .............. Enter
Sold to Party: 6000000000
PO number : 55 , PO Date : 04.06.2007.
Item Overview Tab:
Material 769, Quantity : 100
Enter & Save the Document.
Sales Order 8212 Created
Create Production Order with CO:
Enter Sales order number: 8212, Item No. 10
Order type: PP, Enter
Click on FLAG,
Select Generate Operation and enter NO,
save the Document.
Production Order Created: 60002725
Confirm the Production Order with CO15.
Enter Production Order No. 600075 and save the Document.
Now the confirmation Order will be saved.
Create Goods Receipts with MB31.
Movement type: 101
Order: 6002725
Plant: RAMA
Storage Location: RAMA
Enter and Save, you will get Document Posted: 50000068931posted.
Check the Stock Position with MMBE
Material: 769
Plant: RAMA
Storage Location: RAMA
Execute (F8), here we can see the stock at Sales Order Stock.
Create Delivery with VL01N, Billing with VF01 and Post to Accounts.
Make-To-Stock Production:
Purpose
we describe the planning of a product for make-to-stock production. After requirements planning, you analyze the stock situation and convert a planned order into a production order. You also enter a sales order that is not relevant to the planning. The production order is then released and saved. After the material withdrawals and confirmation of the operations, you analyze the production variances. The sales order is delivered and settled.
Process Flow
1. Planning a Product
T.code: MD61
Logistics Create Production  Production Planning Demand ManagementPlanned Independent Requirements
2. Creating a Sales Order
T.code: VA01
Logistics Sales and Distribution  Sales  Order  Create
3. Executing Multi-Level Requirements Planning
T.code: MD02
From the MRP node, choose PlanningSingle Item - Multi-Level
4. Converting the Planned Order into a Production Order
Tcode: MD04
From the MRP node, choose
EvaluationsStock/Reqmts list
5. Withdrawing the Material for the Production Order
T.code: MB1A
Logistics GoodsMaterials Management Inventory Management  Goods Movement Issue
6. Confirming the Production Order
T.code: CO11N
Logistics Time Ticket Production  Production Control Confirmation  Enter For Operation
7. Creating a Delivery
T.code: VL01N
SingleLogistics  Sales and Distribution  Shipping and Transportation With Outbound Delivery  Create Document Reference to Sales Order
8. Creating a Billing Document
T.code: VF01
 Logistics Create Sales  Billing Billing document
rewards if it helps
siva

Cofiguration step for SubContracting Order Cycle (SCO)

Pls,provide me the the configuration steps of SCO(Suncontracting Order Cycle)

Sub Contracting Cycle
(1) You have a material that can be procured externally, and you have maintained BOM with components. Any waste generated and received during subcontracting process can be maintained as component with negative quantity. (special procurement type should be 30 in material MRP2 view for the mateiral you are getting back from subcontractor)
(2) You create a subcontracting PO (PO with Item Category L). You can also maintain Purchase Info Record for Subcontract category for material and subcontractor.
(3) You make a transfer posting to issue components for SC PO. Material is sent to subcontractor. As material remains under your ownership, system does not make any value entry. But quantity is shown as "Material Provided to Vendor"
(4) You receive finished material against SC-PO. You also specify components consumed in manufacturing of finished goods. Additionally, if you have negative components in BOM, now you'll also receive subcontracting by-products. There are three events, so three accounting entries are generated:
DR FG Stock/ SC By-Product Stock
CR Change in Stock (FG/ SC By-Product )
(for finished goods received)
DR Subcontracting Charges
CR GR/IR Clg
(for moneys payable to Subcontractor)
DR Consumption (Components)
CR Change in Stock (FG/ SC By-Product ) 0
(material provided to Vendor is now charged to expense)
(5) You do the IV for SC Invoice, and the process is complete.
Process of Subcontract in MM
Sub-contract business process:
You want to buy material from the supplier (processed material/ assembled item) , but for some reason (quality of certain item / price ) you will give some component to vendor .
Vendor shall process the item / use the item provided & supply the final item.
SAP process:
1.Create the finished goods material code.
2.Maintain the BOM for the material.
3.Create PO with item category as "L" .
4.Issue material to vendor with movement type 541
5.Receive the material against the PO with movement type 101.
6.MIRO to account for vendor's invoice for the service charge& material used by him.
Note:: At the Time of GR 543 Mvt is up dated for Raw Material.
Can anybody tell me how a process has to be given to subcontracting?
Suppose, I have 3 operations 1)weaving 2)dyeing 3)cutting & packing
if no 2 process (i.e Dyeing) has to be given to subcontracting, what process should i follow ?
The following process to be followed for subcontracting.
1. Item code(material master) to be created at the stage of before dyeing.
2. Item code(material master) to be created after Dyeing as subcontracted item.(F30)
3. Bill of material to be created for the material(2) calling for material(1)
4. Info record and source list to be created for material(2) with the corresponding vendor
5. PO to be released for material (2)
6.Along with PO the material(1) to be issued to vendor
7.On receipt of material when GR is made the stock with vendor will get updated.
How to Create a Subcontract Order?
To create a subcontract order, proceed as follows:
Enter the material you want to order and the item category for subcontracting (L) in the order item.
Press ENTER to display the screen for component processing.
Enter the components that the vendor requires to manufacture the product.
Please note:
u2013 You do not need to enter the date required for the components. This date is proposed by the system when you press ENTER.
It is calculated as follows:
Delivery date of the item - Planned delivery time
u2013 If you do not want the quantity of the components to be changed if the order quantity of the end product is altered, set the indicator Fixed quantity (column F).
u2013 You can determine whether the components are available on the date required by selecting Edit -> Availability check.
If you entered a bill of material as the material in the subcontract order, the components are created automatically.
If you want to determine the components in the bill of material at a later date (for example, if the bill of material is subsequently changed), choose Item -> Component -> New BOM explosion. The existing components are deleted and redetermined in the bill of material.
Save the purchase order.

Make to order Scenario...any client level settings

Hi
please guide me as there any settings which are at Client level or company code level.....
shailesh

Hi harshad,
If you are asking about MTO please go through below notes:
The Made TO Order Cycle:
The sale department passes on the Made to order-Sales Order to the Material department so that material requirement is analyzed. This is done in SAP by carrying on an MRP Run for all the levels of the product BOM. This MRP Run would create Planned Orders for the shortages. Here the planned orders for fert sub assemblies, Components etc, are created. This planned orders for materials produced in house are converted in to Production order and planned orders for materials
procured from outside are converted in to Purchase order. The creation of Production order through the planned orders will convert all the dependant requirements in to dependant reservations.
The dates of production or purchase are decided through the total replenishment time mentioned in the material master, If it is, in-house production, then the Route times precede over the total replenishment time entered in the material master. And the availability of all the components is ruled by the availability checking rules and by availability checking scopes. Thus whenever the system declares a product to be ready or available by a date it implies that the system has checked the availability of the material with respect to the Ware house stock, in coming stock   (Receipts) and all other planned orders already existing for the product or material.
In the Made to order production, sales order produced for Fert and Sub assemblies are converted in to production order during MRP run. The production orders created have a specific quantity, specific Basic start date and a specific Basic Finish Date, a set of operations and a set of component attached from the BOM. In course of production the quantities produced in the operation for an order should be confirmed so that the current status of work is available in real time situation. The components required for production are issued to the production order through goods issue by a movement type 261 and the issue is always made to the reservations or to the order, thereby clearing the reservations. Issues of unplanned components are made as new items issue and not as order issue. The quantities, for an order which are produced completely are the put in to stock i.e. a Goods Receipt is done.
Thus the made to order cycle starts with the sales orders and converting them to Production Orders through MRP Run and there off confirming produced quantities for an order and finally putting the order in to stock.
The Cycle of Made to order: Steps: MTO Scenario
1. Material Creation (Made To order Material with major changes of: Item Category: 0004-make to order/assem.,or 0001-make to order)
2. Route Creation
3. Creation of BOM
4. Sales order
5. Production order Scheduling, Costing, Release and Save
6. Production order Quantity confirmations for operations, Parallel task of material issue to order or to reservations (261)
7. Fully Produced Production Quantities will be put into stock (GR)
8. Delivery against sales order
9. Invoicing.
You have to configure following;
1. OVZG - Defining Requirements Classes SD
Requirements
Availability X
Requirement Transfer X
Allocation ind. 2
Assembly
Special Stock E
Account assignment
Acct Assgt Cat. M
Changeable 0
2. Maintain Account Assignment/Costing  Basic Functions Sales and Distribution Requirement Classes For Costing/Account Assignment
Assembly/Requirements
Assembly type 0
Account assignment
Acct Assgt Cat. M
Valuation M
Without Val. Strategy X
3. OVZH - Defining Requirements Types
4. VOV8 - Defining Sales Document Types
5. Sales and Distribution   Assign sales Area to Sales Sales Document Header  Sales Documents Sales Document Types
6. VOV7 - Maintaining Item Categories
 Sales Documents  Sales 7. Sales and Distribution   Assign Item CategoriesSales Document Item
8. VTFA / VTAA - Copy Control: For Billing document and Sales document
9. KE4I - Assigning SD Conditions to CO-PA Value Fields
10. VOK0 - Pricing Procedure Setup for MTO Sales
Thanks and Regards,
Sateesh.Kandula

Is Order to Cash = Make to Order?

Hi,
I have one query about:
Is order to cash is same as Make to order ? or it is totally different functionality. I couldnt find any good resource in std SAP for order to cash but in business languuage(Job requirement, etc) there is always mentionied as Order-to-Cash.
pl guide.
I'd appreciate if anybody have good document for Order-to-cash functionality.
Thanks,
Roopan.

Order to Cash cycle is a comprehensive process which encompass broadly Order management, invoicing, collections/credit management, cash application and sometimes relating to posting and reporting.
Traditional production systems produce products and stock them as inventory until they are sold (make-to-stock). In order to reduce inventory and increase the level of customization, some firms have designed their production systems to produce a product only after it is ordered. Such systems are referred to as make-to-order.
hope this calrifies ur doubt.
reward points if it is helpfull
regards
Biju

Make to Order cycle

Similar Messages

Maybe you are looking for