M.T.O Delivery

[Former Member]

Hi All,

We have MTO (make to order) process, so against to the customer's P.O we have raised the sales order and given for

production.Now the production order is ready but it is showing

in Sales order stock(MMBE).

I want issue the same to against to the sales order which

I have created, so how to do the delivery.

Thanx&Regards,

Ramu

[Former Member · Accepted solution]

Hello Ramu,

In MTO scenario, everything moves around the sales order. As the name suggests MTO - make to order - that means production will start only when the purchase order is received from the customer. In the material master in the MRP2 screen, you maintain the "in-house" production time in days. Say you have entered 20 days in the field.

Now today when you create a sales order for that item (quantity 10) the system will determine 2 different schedule lines as under:

Delivery Date...........Order qty........Rounded qty............Confirmed qty

20/08/2008...................10..................10...............................0

08/09/2008....................0....................0...............................10

The above schedule lines are determined by the system by way of availability check function in the schedule line.

Now after saving the sales order when you use transaction code MD50 to run the MRP for the sales order, the production order is created with reference to the sales order, any purchase to be done is done for the sales order & when the production order is complete the goods are transferred to the finished goods storage location. When you check in MMBE, the system will show you the stock under the particular sales order unrestricted stock.

If the stock lies in sales order unrestricted stock with the schedule line confirmed for the day on which you create a delivery, then only the system will allow to create a delivery and do the PGI (post goods issue).

Create delivery:

As I explained suppose you are trying to create the delivery on 30/08/2008, then make sure that in the sales order the schedule lines should be as under otherwise the system will not allow to create the delivery.

Delivery Date...........Order qty........Rounded qty............Confirmed qty

20/08/2008...................10..................10...............................0

30/08/2008....................0....................0...............................10

If this is there then the delivery is simple.

1. Go to VL01N - enter the shipping point, enter the sales order number & may be the line item number if there are multiple line items in the sales order (if there are multiple line items in the sales order & you want to deliver all of them, then do not select the line items, directly enter the sales order number) - press enter

2. The delivery qty will show 10 PC - enter 10 under the picking column - the system will change the picking status to "C - fully picked". Do the PGI.

3. Create the billing in VF01.

Thanks & regards,

Allabaqsh G. Patil

[Former Member]

Hi there,

For eg if you create a MTO order with quantity 10, system will post the stock against your SO. But it is also possible that another MTO with quantity 10 is created along with yours. So in MMBE, sales order stock will be 20 (10 for you & 10 for another).

When you create delivery, stock will show as available as 10 out of 20 is reserved for your SO.

Regards,

Sivanand

[Lakshmipathi]

Dear Ramu

System is showing correctly. In MTO scenario, stock will be shown against each and every sale order only in MMBE. You can generate delivery against a sale order only if stock is allocated against that order. If my understanding is wrong, please explain little bit what exactly your issue is.

thanks

G. Lakshmipathi

[Former Member]

Hi,

Thanx for ur reply.

I want to deliver the goods to the customer. So u plz explain me the delivery process.

Thanx&Regards,

Ramesh K

[Lakshmipathi]

Dear Ramu

As already said, first you have to ensure that in MMBE stock is available against the sale order against which you want to create delivery.

If stock is available, go to VL01N, input Shipping Point and Sale order and execute. In the main screen, click on Post Goods Issue so that you have completed the delivery process.

The next stage is creation of billing. Go to VF01, input the delivery document reference and execute. Save the billing document after checking whether the condition values are flowing correctly.

thanks

G. Lakshmipathi