MTO

[Former Member]

Can anybody tell me what type of settings we need to do for MTO scenario from sales side?

[Manoj_Mahajan78]

Akash,

Go thru this documentation

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

Planned Independent RequirementsDemand Management Production Planning  Production Logistics Create

2. Creating a Sales Order

T.code: VA01

Create Order  Sales  Sales and Distribution Logistics

3. Executing Multi-Level Requirements Planning

T.code: MD02

Single Item - Multi-LevelFrom the MRP node, choose Planning

4. Converting the Planned Order into a Production Order

Tcode: MD04

From the MRP node, choose

Stock/Reqmts listEvaluations

5. Withdrawing the Material for the Production Order

T.code: MB1A

Issue Goods Movement  Inventory Management Materials ManagementLogistics Goods

6. Confirming the Production Order

T.code: CO11N

For Operation Enter  Confirmation  Production Control Production Logistics Time Ticket

7. Creating a Delivery

T.code: VL01N

Shipping and Transportation Sales and Distribution Logistics Single Document Reference to Sales Order Create  Outbound Delivery With

8. Creating a Billing Document

T.code: VF01

Billing document Billing  Sales  Logistics Create

Regds

MM

[Former Member]

Dear Akash,

A lots of informative Threads available in to [Search Forum|https://www.sdn.sap.com/irj/scn/forumsearch]

There, you will find a lots of help.

Best Regards,

Amit

Note: Few related threads/ links:

[MTO Cycle|http://www.sap-img.com/production/discrete-manufacturing-the-made-to-order-cycle.htm]

[Make-To-Order|]

[MTO|]

[Lakshmipathi]

Dear Akash

As you would be aware, whether it is a Make To Order or Make To Stock, Requirement Type is controlling this. This Requirement type is determined on the basis of the MRP group and strategy group from material master which has to be configured by PP.

From SD side, may be in OVZ9, you can select the relative requirements. There is nothing much difference from configuration point of view in SD.

thanks

G. Lakshmipathi

[Former Member]

Dear Akash,

MTO

Purpose

The planning strategies explained in this section are designed for the production of a material for a specific individual sales order. In other words, you do not want to produce finished products until you receive a sales order. This means that make-to-order strategies always support a very close customer-vendor relationship, because your sales orders are closely linked to production.

The same relationship exists between the sales order and production that exists in a make-to-order environment. Make-to-order is also used in the following environments.

Production using variant configuration

Assemble-to-order

Prerequisites

Choose a make-to-order strategy, if:

The materials are segregated. In other words, they are uniquely assigned to specific sales orders.

Costs must be tracked at sales order level and not on material level.

Make-to-order strategies should always be combined with lot-size key EX (lot-for-lot. Rounding values should not be used. If you maintain rounding values, they have no effect due to the make-to-order properties of these strategies.

Process Flow:

There are extensive options that enable you to procure components especially for specific sales order items.

You may, however, want to use a different planning strategy to procure components without sales orders. This allows you to keep your replenishment lead time to a minimum. You can do this by:

Planning on the basis of the finished product (see Planning Without Final Assembly (50) or Planning with a Planning Material (60))

Planning at component level (see Strategies for Planning Components)

Using consumption-based or Kanban-controlled components

Customer stock can exist on any BOM level. See Stockkeeping at Different BOM Levels for more information.

Because production is closely linked to sales orders, this results in a customer section in the stock/requirements list.

Unplanned goods receipts (such as returns) cannot, as a rule, be used for other sales orders, even if they are in working order, unless they are adapted to meet a customer's needs.

In the basic make-to-order strategy, Make-to-Order Production (20), no specific product structures are required. This means that it does not matter if the material has a BOM or not. The material can be produced in-house, or it can be procured externally. No planning is involved in this strategy.

Planning Without Final Assembly (50) and Planning with a Planning Material (60) do require a specific product structure (i.e. a BOM, which means materials are always produced in-house). These planning strategies assume that you want to plan procurement (production or purchasing) of your components by planning the finished products. This means that you need to have a fairly stable demand for your finished products. If, however, you can plan more easily at component level than at finished product level, see Strategies for Planning Components.

Configuration Settings:

Create material master by maintaining general item category group- 0001(make to order)

Availability check - 02

Transportation Group - 0001

go to va01 and raise sales order

item category:TAk

Schedule line category : cp

Requirement type KE

Requirement class 040

Check TOR and avalability check

special stock : E

VOV7

of TAK

billing relivence : A

Pricing :X

go to mb1c

maintain stock with a special stock indicator E

mavement type 61

Special stock E

specify sales order number line item number and saveit

go to VL01N main data

Go to VF01

save it

Regards,

Abhee.