Third Party Direct (MTO) Process

[Former Member]

HI all,

Scenario:   would like to know how costs and full material details flow through the Purchase Order in a Third Party Direct process using Make to Order?

*Create Sales Order Line with TAS [Third Party Direct) and also needs to be MTO material (item is Make to Order....goes through Variant Config Type Matching but no Stockable material available); 

*Purchase Req is created on the schedule line.  

*Purchase Req is converted to PO (....here is are the big questions....when it comes into the PO the description is generic because variant characteristics did not come over to the PO   & no cost was pulled into the PO for the material....material master itself has not cost either because its a MTO.)

*Purchase Order is sent to Vendor  (no GR expected)

*Vendor assembles the product (does the manufacturing of the Product)

*Vendor sends the product directly to the Customer

*Vendor invoices the PO for the manufacturing and invoice is posted in SAP against the PO line....this, in turn, updates the "cost' portion of the Sales Order

*We bill the Customer for the Product and then apply payment back to SO.

So the big questions, how do the variant characteristics come into the PO and subsequently get sent to Vendor so they know the product attributes (instead of some generic material)....my assumption is to some how pull the variant characteristics into the Purchase Order Line item text and send that to supplier....

The biggest question....how do I get the cost/price to come into the PO line item to send off to Vendor....what are the options here.

I appreciate your input!!

[Former Member]

Hi all,   Let me ask this question in a different way:

Has anyone here processed "Third Party Direct using Make-to-Order Product"?   if so, can you please explain the process you used?  

Thanks!!

[Shiva_Ram]

Check in Materials Management forum, whether you can sue subcontracting process to fulfill this requirements. I am not sure how the variant configuration material can be added in the sub contracting process. If it is possible to add, then you can use third party process.

Regards,

[Former Member]

Thanks Shiva, however, I don't believe Sub-contracting will work in this process.   Just a little suprised no one here has used Third Party Direct for Make to Order products.    I will post this on the MM site as well and see if anyone has ideas.   Thanks.