Make to Stock & Make to Order....

Hi ,
Can you please tell me the difference between MTO, MTS and STO with scenarios?
Thanks....

HI,
MTO-Make to order Specially for customer requirment (Laptops) ..what ever you ask they will configure
MTS-make to stock .....its internal process....based on Demand maintaing stock(Ex : COmpany knows mostly 350 GB harddissk will move so, comapny will make 300 GB harddisk as make to stock) or ....one model in laptop is fast moving....they will make that as MTS
STO - In this just you are moving stock from one place to another place.
Plant to plant
Storage location to storage location etc.....
Regards
raj.

Similar Messages

Make to order / Make to Stock / Make to production. Scenarion.

Hello..
Please explain Make to order / Make to Stock / Make to production. Scenarion in details with examples.
David.

Dear David
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.
You can use make-to-order production:
For branches of industry or products where a small quantity of products with a large number of different characteristics are manufactured
When a product has to be assembled particularly for a sales order
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

Make to stock, make to order, COGI

Hi Gurus,
Could you please forward me some good study material & interview questions for make to order, make to stock and transaction COGI.
Email id: [email protected]
Reward points for sure..
Thanks and regards,
Sheeni.

Hi,
for Make to order
refer the following link..
http://www50.sap.com/businessmaps/092BF1DFEEB2456DADD0DD0284EBE8A2.htm
For Make to Stock..
http://www50.sap.com/businessmaps/309E4889C5104F7D9FF587469EF5FF5D.htm
Transaction COGI.
Re: COGI transaction
Thanks

Make to stock, make to order issue,

Hi
can any body help me out, what are the configuration required in order to activate make to stok, and make to order,where exactly it reflects.
Thanks

then you can only ask your customer if he wants to wait or if he wants only 20 and cancel the 5

Make to Stock-But were actually Make to Order Mfg

Is it possible to have a soft link between (lets say) 3 sales orders and 1 production order without using the stringent Make to Order functionality in SAP. I was told some time ago I can build a planning strategy utilizing the right combination of requirement class and requirement type plus associated triggers within the strategy profile to combine sales orders to a production orderand view the sales order assignments in the production order. The sales order numbers should have a link to the production order. What's important is flexibility to make planning adjustments with my production orders to sales orders. Keep in mind we are a make to Order Shop but for efficiency we plan as make to stock.
I would like to hear from anyone who uses such planning strategies to help me with the settings.
Thanks in advance.

Hi,
Pls. try Strategy Group 40 ( Planning with Final Assembly) which is best option when you need flexibility between Make-to-Stock & Make-to-Order scenarios because it gives you the flexibility of working with both PIR as well as CIR ( Sales Order). So as you said you can flexibly get Planned Orders against PIR as well as against Sales Orders which will serve your purpose of planning with MTS but execution in MTO way.
This strategy enables you to do dispatch readily when SO arrives with reduced Replenishment Lead Times.
Further you can use Indv/ Collective Indicator in Material Master -
> MRP-4 View as :
2 Collective requirements only
which will help you to get 1 production order against multiple Sales Order.
Hope this helps.
Revert if any doubt and reward if useful.
Regards,
Tejas

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

Male to order and Make to stock

Hi,
what are the various config settings and master data maintenance to be done in SD for Make to order and Make to stock scenario. what integration points with other modules to be kept in mind for the above two scenarios.
regards
sachin

Chk the following threads, these have enough info on both Make to order and Make to stock.
https://forums.sdn.sap.com/click.jspa?searchID=6293687&messageID=4309082
https://forums.sdn.sap.com/click.jspa?searchID=6293715&messageID=4271394
https://forums.sdn.sap.com/click.jspa?searchID=6293715&messageID=4091750
https://forums.sdn.sap.com/click.jspa?searchID=6293715&messageID=3972069
Regards
AK
Reward points if helpful

Availability check for Make to stock and Make to Order

Dear All,
Client is selling Make to stock and make to Order material.
How and what settings need to do for Avaialbility check.or we can use standard one.
I hope in case of Make to Order availability check may not happen.
Please correct me.
Thanks in advance.
Regards,
Shrikant

hi,
yes for make to order we dont have AvChk. for make to stock items u need to follow the
below configuration.
Availability check
1. Availability check is an integral part of the business process that determines if the required delivery quantity can be met on a required delivery date. For this purpose the system takes into account pre-delivery activities such as scheduling for picking or packing times and the time taken to produce or obtain the material. It also performs several background functions such as Backorder processing, rescheduling and ATP quantities.
2. Backorder processing: processing of a sales order that has not been fully confirmed or not confirmed at a certain delivery date.
3. Rescheduling: is a proposal of how u2013 confirmed quantities already assigned to a sales order can be reassigned to other sales orders that have a higher priority.
4. Available to promise (ATP): is a process of checking the available quantities of a material. The ATP quantity consists of warehouse stock + planned receipts (incoming stock) u2013 planned issues (outgoing stock). to examine stock on hand (CO09) proceed to logistics u2013 sales & distribution u2013 sales u2013 environment u2013 availability overview.
5. Replenishment lead time (RLT): is the time taken for the material to become available either internally (in house production) or externally (from a vendor). The most important things to consider during an external procurement are purchasing and MRP 2 (procurement) views of MMR where the processing time for purchasing, planned delivery time and goods receipt processing time are taken into account. On the other hand internal procurement is based on in house production time (MRP 2 view) goods receipt processing time or alternatively RLT time, which is found on MRP 3 view.
6. RLT (Replenishment Lead Time) is the time taken for the material to become available. RLT is only used when doing an ATP check (Available To Promise). The value of RLT for a material is specified on material master record.
7. There are three types of availability checks u2013
Check on basis of ATP quantities.
Check against product allocation.
Check against planning.
Configuring Availability check through Checking Groups u2013
1. The checking group + checking rule determine how the availability check is to be performed.
2. The checking group determines whether and how the system checks the stock availability and generates requirements for material planning. The checking group defines what type of requirements will be passed on i.e. summarized requirements (daily/weekly) or individual requirements for each sales order.
3. The checking rule applies to how the availability check is to be carried out at the transaction level. Note that you must define checking rules for each individual application such as for production orders for example. In Sales and Distribution, the checking rule is specified internally within the system and cannot be changed.
4. The checking rule, in conjunction with the checking group, determines the scope of the availability check for every business operation; that is, which stocks, receipts and issues are to be included in the availability check and whether the check is to be carried out with or without the replenishment lead time.
5. Briefly explaining the above u2013 checking group determines which type of requirement to be passed on to MRP whether it be individual or summarized and checking rule which is at the transaction level and can be configured independently for each application module, determines which stocks, receipts and issues to be taken into account. For performing an availability check checking group has to work in conjunction with checking rule.
6. Advantages of individual processing over summarized processing u2013
Backorder processing is possible.
You can access (MD04) order, line and schedule line individually which gives a greater control on available stock and requirements placed on stock.
The system automatically uses individual requirements in case of special stock items.
7. Required data for the Availability check to be carried out u2013
The Availability check must be switched on at the requirement class level.
The Availability check must be set at the schedule line level.
A requirements type must exist by which the requirements class can be found.
A plant must be defined in the sales order for each schedule line item (in other words plant must be defined for every material in MMR).
A checking group must be defined in the material master record in the MRP3 screen in the availability check field.
8. Configuring Availability check and defining Checking Groups u2013
Checking groups are introduced into the sales order based on the setting in the material master record.
SAP standard checking groups are 01 u2013 summarized requirements and 02 u2013 individual requirements or you can create your own by copying the standard ones.
Total sales and total deliveries columns are there to configure a checking rule to sum up requirements to post to MRP either individually or by day or week.
Block quantity required can be set if you want several users to be able to process the material simultaneously in different transactions without blocking each other.
The no check indicator is CHECKED when you DO NOT want the system to carry out ATP check.
9. Defining material block for other users u2013 the block check box is an indicator that enables you to block material master records of a particular material during the availability check and restrict other users from accessing same master record and reserve the material. If the block is not set, two users can confirm the same material at the same time for two different orders, not knowing if the stock is available or not. If you select this field, the material is blocked during the availability check and other users cannot: a) Make changes in the material master record. b) Create purchase orders for the material. C) Create orders for the material.
10. Defining default values for checking groups - Checking groups are introduced into the sales order based on the setting in the material master record.
However if there is no entry present in the material master record for the checking group, a default value can be set here, depending on material type and plant.
This default value will be used by the system depending on the material type mentioned in MMR and plant in sales order.
If an entry exists, this default value is over written by MMR.
11. Controlling Availability Check u2013 in this section, you tell the system what stock on hand and what inward and outward movements of stock it must take into account when performing the availability check in addition to whether or not to consider the replenishment lead time.
12. These settings are based on the checking group that is assigned to the material master record and the checking rule that is predefined and assigned to the sales and distribution transaction.
13. These settings carry out control both for sales order and delivery as well. This is due to the fact that you may want to include specific stock or incoming stock for the sales order, yet at the time of the delivery only include physical stock on hand waiting to be shipped.
14. It is possible to indicate to the system that you would like the availability check NOT TO CHECK the stock at the storage location level. This indicator is used to set the scope of the availability check.
15. It is used to switch off the check at storage location level. You create a reservation for a particular storage location. However, the scope of the availability check is set in such a way as to exclude the storage location. In this case, the system carries out the check at plant level only and does not take the storage location into account that is specified in the reservation.
16. Should you not want the system to automatically check RLT, you may indicate so here. RLT is the time taken for a material to become available. It is only used when doing an ATP check and is taken from MMR.
17. Defining the elements in the availability check entirely depends on the business needs, but a few tips are given under u2013
When controlling the Availability check at the time of the sales order, a purchase requisition does not necessarily indicate by it is going to come into the plant.
A shipping notification on the other hand - a confirmed purchase order u2013 is a good indicator of receiving stock on a specified date.
It is always recommended not to select the shipping notifications for the delivery requirements type as you may not actually receive the stock into plant or warehouse for which you are creating a delivery.
regards
anand

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 /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 Stock - Sales order stock allocation

Hello Experts,
In the make to stock scenario, how do I allocate certain stock to a sales Order? For example, with my company, there could be 30 items in a sales order. All item stocks are not available at the time of Order placed. As we make the stock, we want the stock to be allocated to this sales order. Is there any way to do that?
Please help.
Thanks

Hi,
As my understanding, there is no such assignment function to MTS sales order in standard SAP.. The possible solutions I ve touched include..
1, 'convert' MTS to MTO.. It requires that you can change the item category in sales order.. Once stock for one item is fulfilled.. Change the item category in sales order from MTS to MTO and move the corresponding stock from normal stock to sales order stock via 413..
2. Rely on the SD ATP logic..if your product categories are not so many.. The tipical ATP configration is that for sales order, the ATP scope includes stock, production order, purchase order..etc and ATP checking scope for DN is only against on-hand stock.. ATP checking and/or rescheduling for Sales orders gives out a sequency of confirmed delivery date, meaning, all the sales orders are queued for deliverying in system based on the ATP status.. DNs need to be created strictly according to the confirmed delivery date in sales order.. This way actually raises a very high management requirement to business..
3.If you use batch management, you can also consider 'batch determination' for this assignment..
4,In one of my previous project, they use 'consignment process' for such MTS assignment.. Such assignment business in that client is not a normal process and it is only applicable for some VIP customers.. If the stock is not enough to fulfill all the demand in the sales order, they create a special consignment fill-up order to 'delivery the goods on hand to customer consignment stock', while warehouse places special label on these goods when they 'PGI' the consignment fill up delivery.. This way ensures that the goods can not be withdrawed by other Sales order and/or reservations..

Make to Order and Make to stock

Hi Experts,
I'm using make to stock and make to order scenarios for one material. For this i did the settings at the sales order level. Here we are creating External sales orders and Internal sales orders. In material master we maintained strategy 25 with requirement type KEK and class 046. For make to order, we are creating external sales orders. For this account assignment category is 'M'
For internal sales orders means Make to stock, we maintained separate item category, Schedule line, Requirement type and Requirement class. Account assignment category 'B'. While creating sales order with requirement type say Ex: ZEK and requirement class say Ex: 007. It is not creating the requirements. and in this case i.e account assignment category, the different sales orders qty for a material are combining and creating the one planned order.
How to get the requirements for make to stock and get planned orders individually.
Plz help me?
Naren

Is there any option to create planned order from sales order directly in the case of make to stock. I tried for requirement class with account assignment category B and automatic planning. It is giving the error message.
Account assignment category B does not result in make-to-order production
Message no. VT372
Diagnosis
During automatic individual customer requirements planning, you selected account assignment category B which has value as a special stock indicator.
System Response
Since this does not result in a make-to-order production, the system rejects the process.
Procedure
Enter a valid account assignment category. In the standard SAP system, the values 'E' and 'D' have been defined for this purpose.
Is there any way to get automatic planning with B account assignment category.
Naren

Make to order OR make to stock

Hi
How can I find out a sales order whether particular sales orderu2019s requirement is make to order Or it is make to stock u2026u2026.
Thanks in Advance

RqTY is KSV
Does it mean that it is MTO ?
Yes this is MTO
thanks
G. Lakshmipathi

Make to order, Make to stock, COGI

Hi Gurus,
Could you please forward me some good study material & interview questions for make to order, make to stock and transaction COGI.
Email id: [email protected]
Reward points for sure..
Thanks and regards,
Sheeni.

Hi
This should cover everything
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MYSAP/SR_PP.pdf

Make to Stock & Make to Order....

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