Make to Sales order ( MTO Valuated Stock) with variant configuration

[narasimham_t]

Dear all,

My client is manifacturing cables, for the same we have mapped MTO with Valuated Stock Scenario. On the same i have some doubts, so please clarify me on the below.

The process which i have mapped is.

1) Creation of Quotation ( VA21)

2) Creation of sales order with referance to Quotation (VA01)

3) Make to Order Planing (MD50)

4) MRP Run cum Convertion of Planned order into production Order ( MD04)

5) Releasing Production Orders (Co02)

6) Goods issue to production Order (MIGO)

7) Goods Receipt from Production Order (MIGO), Here inventory will post with the sales order cost as it is Requierment.

Note: Finished Product price will be '0' and indicator will be "s".

😎 production order settelment (Ko88) - here the variance between planned prd cost and actuval cost will be settled to Sales Order.

9) Settle sales order to COPA (VA88) - here the variance will go to profitability Analysis.

But on the same i have some doubts,

How WIP should calculate and what WIP should Calculate (either the production Order is Base for WIP or Sales Order is base for WIP).?

As for my knoweldge the standard has not given provison for WIP Calculation on Sales Order.?

And how many Result Analysis keys is required ( is 1 for Prodcution order and 1 for sales Order).?

if we have created 2 keys, how the assignments and updates should be done?

Please Guide me ASAP, i am about to go live.

Thanks & Regards

Narasimham T

[Former Member · Accepted solution]

With MTO with valuated sales order stock there are a couple of things you didn't mention that help determine what should happen. You didn't mention if the sales order is a cost collector and which requirement class you have assigned to the sales order line item. The account assignment category assigned to the requirement class determines if the sales order is a cost collector.

Assuming the sales order is not a cost collector, then all the manufacturing cost will be collected on the production order and you assign a RA key and variance key to the production order. When a goods receipt is performed, the production order is credited based on the sales order valuation and the goods will be placed into sales order stock. When the goods are picked for shipment and PGI performed the inventory account is credited and the COGS is debited. When the invoice is posted the revenue can be charged to COPA and the COGS can also be posted to COPA statistically. In this scenario, since the sales order is not a cost collector, not RA key is assigned to the sales order and no financial postings are made to the sales order.

[narasimham_t · Accepted solution]

Hi Back,

First of all thanks for your Responce.

Coming to issue i have taken Requierment class 46 as referance and i created my own requierment classes Z46 (sales Order)

, Y46 (for quotation).

In requierment class i mentioned costing as X required, Costing ID B, Costing Method 1, and i mentioned the costing variaant, Costing sheet, condition type EK02, account assignment category E, Valuation M, and Settelment Profile I mentioned.

As you said at the time of goods receipt from production order it is taking sales order cost to valuate inventory, when i am setteling my prd order the differance between planned and actuval cost is settling to sales order by cost of goods maniofactured (dr/cr) price differance (dr/cr) with object as sales order.

Once after i have delivered the goods to customer and billed, when i settle my sales order to CO PA it is only again settling the price diff only .

As you said it is not reconizing the revenue and COGS to settle what might be the reason.

guide me asap.

if you can provide mail id or contact of urs may help me really

Regards

Narasimham

9618560789

[former_member229531 · Accepted solution]

Hi,

Iu2019m new to MTO process. I have couple of questions at different steps in MTO process

1) Creation of Quotation ( VA21)

2) Creation of sales order with referance to Quotation (VA01)

3) Make to Order Planing (MD50)

4) MRP Run cum Convertion of Planned order into production Order ( MD04)

5) Releasing Production Orders (Co02)

6) Goods issue to production Order (MIGO)

7) Goods Receipt from Production Order (MIGO), Here inventory will post with the sales order cost as it is Requierment.

At the time of GR production order to Inventory in valuated MTO process, Material post with standard price to Inventory and special stock as a sales order?

Could you please explain me this process?

Note: Finished Product price will be '0' and indicator will be "s".

😎 production order settelment (Ko88) - here the variance between planned prd cost and actuval cost will be settled to Sales Order.

At the time of production order settlement (KO88), production order settlement is settled to sales order or COPA and variance settled to COPA in valuated MTO process?

Could you please explain me this process?

9) Settle sales order to COPA (VA88) - here the variance will go to profitability Analysis.

At the time of Sales order settlement (VA88), Sales order settlement is settled to COPA and variance settled to COPA in valuated MTO process?

Could you please explain me this process?

Any help is appreciatedu2026.

Thanks,

Anusha

[Former Member · Accepted solution]

Hi Narasimham,

Usually when I work with valuated sales order stock I don't make the sales order a cost collector (set the account assignment category = M in the requirements class). If the sales order is not a cost collector then the revenue and cost can be posted directly to COPA when the invoice is processed. All you need to do is map the S/D pricing conditions to COPA value fields in configuration.

If the sales order is a cost collector it is still possible to post to COPA through settlement. However, the process does involve a lot of steps and you have different options along the way. You can find the steps by going through the configuration menu path under Product cost by sales order - Period end closing. You will need to look in both the Results analysis and the Settlement sections.

In general, you need to assign a RA key and a settlement profile to the sales order (you do this through the requirements class). Then complete the RA configuration requirements. At a minimum, you will need to assign each of your posting cost elements to line ids and map those line ids to RA secondary cost elements. Next, complete the setlment configuration. You will need to setup a PA transfer structure (specified in the settlment profile) and map the RA cost elements to the appropriate COPA value fields.