Project & Sales order Closure before delivery complete

[sunil_yadav2]

Hello All,

My client want to close the projects and sales order to close before meeting complete delivery lets take example:

customer orders 100 quantity of an item and we have delivered 90 quantity than suddenly customer change the requirement to close this order. so our concern is to close this Sales order and project. we don't want to use option:

1. we don't want to change the quantity in sales order and project to 90. this will effect in auditing.

2. remaining quantity will be shown as delivery.

Please suggest us to close the sales order & Project without affect in Auditing or any other account.

thanks

Sunil

[sunil_yadav2]

thanks to all

[former_member220491]

Hi Sunil,

I think your process is MTO(make to order). If you have to short close the sales order or project. What ever the quanity left agaist the project or sales order transfer that stock to unrestricted stock from project stock. Then you can close the project as well sales order. You can use movement type 411Q to transfer from project stock to unrestricted plant stock in tcode: MB1B

Thanks

kishore

[sunil_yadav2]

Hello Kishore,

we have MTO scenario and our issue is to close the sales order, Project & Production order before deliver the complete quantity means when suddenly a customer close the order and our material related to that sales order or project is in process than how we can settle the sales order and project

Example: i have got order of 100 quantity regarding the sales order & we have issued the RM quantity to Production order. More over we have consumed 80 quantity and post in finished stock and other remaining 20 quantity is in process means that can be two type of process:

first is material which we issued is in process and the status of the production order PCNF.

Second the material is not in process and status of the production order is PCNF. when suddenly customer close the order.

my question is if we face these type of condition how we should settle or close the sales order, project & production order.

Please suggest for this case.

Thanks

Sunil

[Former Member]

Dear Sunil,

The best way of working in MTO scenerio is always start working after getting PO from customer.

But still customer have rights to change the PO quanitiy or cancel the order too.

As Abdul is advised you that you can del. your sale order with 90 qty and remaining qty you have to transfer from your project stock to normal stock (if you already confirm your FG prod. order). in case of SFG and RM you have to do the same transfer from project to unristicted plant stock using MB1B, Movement type 411 Q.

In this way you can close your project and sale order too.

There is no other way to control on such kind of MTO scenerio.

You are right that at the end of the year may be you have lots of unristicted plant stock in same way.

then best option is firstly use this stock for ur new project if got a same project.

Regards,

Narender Verma

[sunil_yadav2]

Hi Narender,

Thanks for reply

we are checking this but main problem is when there is cancellation on order when Work in Progress.

what is the solution for this.

thanks

Sunil

[former_member230675]

suni, there will be many conditions in a contract while signing with a client. Most of the supplier will not accept order cancellation for Job Order (MTO) once they start the production. Any how this is a pure business decision. Only option is if the order got cancelled during Work in progress then either complete the production and keep it in stock or take semi finished goods in stock and either use for next order or scrap them.

[sunil_yadav2]

Hi Abdul,

Thanks for your reply,

Now we have to test this and i will get back to you for next updates.

Thanks

Sunil

[former_member230675]

Yes it is possible, create delivery from project for 90. While doing final confirmation for all activities tick the clear open reservation check box in the activity. If you are using valuated project stock then do a transfer posting of balance material from project stock to plant stock.

[sunil_yadav2]

Dear Abdul,

check on clear open reservation is to cancel the reservation created against project.

But for valuated stock you mentioned transfer posting from project stock to plant stock. if we have many project of this type so this will increase this plant stock whereas we are using assembly process so its possible that we don't have any FG to deliver and customer cancel or change the order.

if we have produced the material or produced 95 and delivered 90 where order was for 100 and than customer cancel the order or change than how can we manage the remaining 5 quantity which are manufactured. we don't have repeated order of same type product.

can we use first option in valuated stock so all the open items will close and also clear auditing

Thanks

Sunil

Edited by: sunilyadav786 on Jun 9, 2011 10:43 AM

[former_member230675]

thanks sunil, for explaining the whole business scenario.

If the client cancels the order I think it is better not to manufacture / assemble those FG, because each order might be a unique one. You could close the open reservations / open production orders and transfer your raw materials from project stock to plant stock so that you could reuse these raw materials for the next project. If there are high quality requirements for raw materials then instead of moving to unrestricted plant stock you could move to Quality stock.

[sunil_yadav2]

Dear Abdul,

Thanks for your valuable suggestion.

i will try this and get back to you.

thanks

Sunil