Typical sales scenario

[reazuddin_md]

Hai All,

My client belongs to manufacturing industry.

their order process is as follows:

customer place for RFQ (req for quotation , we ll consider it as Inquiry ), Client wont maintain any Inventory in Plants. Based on customer order, material will be transferred for production.

but in some cases, ( at the time of dispatch customer have an option to choose specific qtty to receive,where as production is already done.

eg: customer order- 2000 EA, prod-2000 EA, at the time of dispatch customer revise his order to 1500 EA,the same will be deliver to the customer. the remaining qtty will be stored in Inventory i.e.500 EA.

now when the other customer places order for the same material say, 1000 EA.

System has to deduct the inventory stock and for the rest has to go for production.

Can someone give me MTO document Flow, starting from sales order

my doubt is:

1) This can be done through MTO- will use the item cat group in Material master , by the item cat det'n system .

but how would the system consider the inventory stock also.

2) customer places req on last week of current month (for which he req's next month, its monthly req ) & at the same time he will place 2 more req's for next 2 months ( which is called "tentative schedules") ,but the production dept has to produce next month req completely & 80% of the tentative schedules.

How this will be addressed?

plz clarrify,

[Former Member · Accepted solution]

Hi,

This is more of a PP responsibility than SD. PP needs to choose the appropriate strategy type for this scenario.What i believe PP need to even create their customized strategy type for this to happen.Consult with PP guy and I guess u ll get a way.

Sam

[reazuddin_md]

done

[Former Member]

hi,

If u want the delivery to happen as per the schedule then you should use Scheduling agreemnet.suppose if you want to change the delivery schedule as per the customers wish then it can only be done through the qty contract.

[reazuddin_md]

wen we create qtty contract - will this req flows to production for Make to Stock?

In this case, how schedule line dates will be confirmed if i use scheduling agreement with MTS?

[Lakshmipathi]

As already suggested, MTO scenario wont suit you. Go with MTS where I can explain by taking the scenario what you had described.

Initial order was placed for 2000, produced 2000 but despatch was made for 1500. So stock readily available is 500. Now when you create a new sale order, based on the checking rule you maintain, the stock will be confirmed for the new order and for the remaining quantity only, production will take place.

thanks

G. Lakshmipathi

[reazuddin_md]

Hi all

thanks for reply-

am going with MTS scenario as explained by Laxmi- (thanks buddy)

as that example exact suits my req-

one more is:

customer place req every 25th of the month with pre defined del dates ( which can be changed afterwards with customer req)-

here am planning to create Qtty contract ,

whenever customer request for dispatch will create release orders with MTS scenario-

or you want me to proceed with (Scheduling agreements + MTS ) - Delivery - Billing ?

plz suggest

[Former Member]

Manufacturing does not work that way. Even in the case of MTO, orders which are requirements are cumulated every day, week, fortnight or month. Based on this a production plan is drawn up. Please remember there is a sourcing lead time for the raw materials for the finished product and it ca vary from a day to three months if the material is imported.

So how does one have a plan. Sales order plan is the basis on which estimates are made and production plans are made. Again it also depends on the working capital cycle in real time as well as to how far you can plan given the specific nature of the product.

But lets consider that the company has fairly large orders which is the reason why he is going in for SAP. How can one determine whether a customer is going to pick up 505 of the goods or 60% or 100% Unless you have some historical data,

Either way Availability check and TOR in SAP takes into account all these eventualities and it cumulates the requirements with the stock available and generates exactly for the difference. This is standard SAP behaviour.

regds

Jude

[reazuddin_md]

Hai Jude,

nice to see ur reply.

Here the customer place for the req which is 3 orders

1 for next month ,which has qtty n del dates- ( which is Make to order )

2 & 3 is for next 2 months ,which is tentative schedules can be vary with 10%-20% variance.

this tentative schedule will helpful to the client to procure Raw material from the source.

but in 1st order - system has to check for the inventory stock & the rest has to be transferred for prodcution. - as i said above.

this is typical client scenario,which they are following from scenario.

[Former Member]

hello, friend.

i believe jude explained it well. in short, your requirement is not really MTO. a standard MTS can address your requirements. the standard TOR and availability check (with MRP settings) should suffice in meeting your client's needs.

regards.