MTS and MTO scenario

[Former Member]

Dear all,

Could someone please let me know wht is difference between MTS and MTO scenario related to cost, settlement ,variance calculation and overhead.

Rgds

[Former Member · Accepted solution]

Hi,

MTS:- Costs will be settled aganist Production order

you have to issue Material aganist Product order

MTO:- Costs will be settled aganist sales order

you have issue material aganist sales order by using 261 E

Thanks

sreeni

[Former Member]

Surendra,

Related to cost, settlement ,variance calculation and overhead there is no difference between MTS & MTO.

The difference lies with inventory control.

Hope this helps you.

SmanS

[rohit_chauhan]

Hi,

As per my knowledge there is no difference in the dettlement process for both.

However, it is different for descrete and REM, as costs are booked on Production Order in Descrete and on Product Cost Collector in REM scenario.

Let the experts comment.

Regards,

Rohit.