make to Order in IN and QT

[Former Member]

Hi Experts,

I am working on a scenario where the the process starts with customer requesting for make to order item. for this I created Inquiry. Then the requirements of make to order item will be redirected to designing department and they will design the item and send it to accounts to find the cost.Accounts will add tentative percentage of profit on it and add the validity period. Now I have to create a quotation with the total amount and when it can be delivered if the customer accepts the quotation.

I am not sure how the material should be configured from mm because, the item what customer is requesting is not in material master. In case If mm created the material (which is not easy as it may have nearly 1000 sub items)at the time of quotation, what will happen If customer rejects the offer? Pls throw some light on this scenario.

Thanks,

KP.

[Former Member]

hi,

INQUIRY : in your case is preparing an estimation of customer's requriment.

QUOTATION : in quotation maintain terms of payment and take 100% advance against the material which you are going to produce against his requriment. if he accepts only go ahead and create a sales order. MTO stock is produced against the sales order and reservered against the sales order right.

SALES ORDER : before creating a sales order. you have to create a material master data on the same. that means for eg in your case 1000 components = 1000 materials should be there and keep them in BOM & finally use 561 E and reserve against the sales order.

NOTE:here after the quotation is fixed then there should no point of customer rejection.

balajia

[Former Member]

Thank you for your response Balaji,

Before sending the quotation to customer, I have to enter the designed material in quotation. how to handle this? If I create the materials according to the design specified, there may be a chance that the customer may do some more changes from his side or he may reject the item for NO reason. Only If he accepts we can take 100%advance at creating the sale order, In sale order however we can can copy all the materials and components from quotation, that may not be an issue.

But how/what to enter as material in Quotation which is having components? did anybody come across this kind of scenario earlier and drop in your experiences on how you handled it.

Thank you,

KP.

[Former Member]

hi,

use PHANTOM BOM for sending the QUOTATION. so the advantage of using phantom BOM is if you send to customer if he make the changes on the quantity or design then it will not effect the system really.

in Sales Order you can use REAL BOM for creating MTO product,

yes, in my previous assignment, even in some circumstances even the customer paid 100% advance and rejected the material,

at that point of time that will not affect our business right.

balajia

[Former Member]

what you said is Right Balaji. I guess we have come closer to the requirement with Phantom BOM concept. But customer may add new materials(components) and may delete existed components. So is this possible to maintain phantom bomfor that requirement? and also , send some links or let me know the config stuff about phantom bom or any documentation could help.

Thanks,

KP.

[Former Member]

hi,

these are the links on PHANTOM BOM:

http://www.sap-basis-abap.com/pp/the-concept-use-of-phantom-assembly.htm

balajia

[Lakshmipathi]

send some links or let me know the config stuff about phantom bom

Please dont ask such questions. You can easily get all the documents from Google or from this forum.

thanks

G. Lakshmipathi

[Former Member]

Hi,

I just found all the relevant stuff in Google. Sorry about that.

Thanks,

KP.