Sales Order process using STO features

[Former Member]

We already have a SAP process to satisfy one of our business need. But we want to see if we can address this business situation using an efficient SAP logic

Business Scenario: Each Customer is assigned to a default Plant (in VD03). A customers belonging to a certain plant can order parts from other plants (if stock is not available in their default plant). But we should be able to deliver those parts from his default plant.

Our Enterprise Structure: One Company Code – One Sales Org – Multiple Plants

Our Current SAP Process: When we try to create a Sales Order and if the stock is not available in Customer’s default plant, we change the Item Category from Standard to different Item Category (we call this Cross Doc Item Category). This allows to full fill this order from other adjacent plants. We don’t change the Delivering Plant in the Sales Order.

Based on the Item Category configuration set up, upon saving Sales Order, system creates Purchase Req. Also we create an independent TO (thru job) to reserve the stock in Supplying Plant.

This will be followed by Purchase Order (thru our scheduled job), Outbound Delivery in Supplying Plant (to Delivery Plant), Inbound Delivery in Delivery Plant, Outbound Delivery in Delivery Plant (to customer), etc.

With this process, we face lot of issues. We also maintain different scheduled Jobs, monitor reports for this process, maintain master data, etc. Lot of work is involved even for reversing this process/steps in SAP (canceling the deliveries, Purchase order, moving stock, etc).

Is there a simple/better way to address this business? Basically, if there is no stock in Customer’s default plant, we should be able to get stock from other plants and still be able to delivery from Customer’s default plant.

[Former Member · Accepted solution]

Dear Jack,

I have tested your case in SAP Ides.

To simplify your process, I think  you can try  activing MRP process. Below suggestion for your check

1. Create SO

If stock is not available, then system generate requirement in MD04, here ,no need change the item category .

2. Run MRP (MD01,MD02,MD03)

system generate an Stock transport requistion

3. Convert STR to STO,and do goods receipt. (here you can active STO shipping, one or two step depend on your receiving plant)

4. Then refresh your SO and deliver the stock.

The difference from your current process is the stock is not sales order stock, so it can be booked by other sales order.

To generate  STR, you have to set special procurement key (for stock transfer) in material master MRP2 view, and MRP type PD. And also should consider MRP job frequency.

[Former Member · Accepted solution]

Hi Ju,

Thanks a lot for the response. Few questions.

How can we hold the stock in the other (non-default) plant? Does the system automatically deducts from the available quantity so that next order will not see this stock? Our MRP program runs at night.

Example:

Let's say Customer belongs to Plant A (default plant).

He tries to place an order for an item of Quantity 1.

Let's say this item is not available in Plant A but total stock of this item in Plant B is 1.

System sees this stock (based on your suggested process). Confirms the sales order.

For the next sales order, this stock should not be available. How can we make adjustments in stock or ATP?

Thanks!

[Former Member · Accepted solution]

Hi Jack,

two cents also here:

1. if your MRP has set safety stock or strategy group in MRP view data,

A. safty stock  case:　If your stock in delivery plant lower than safety stock, MRP can generate the STR the second day.

B: you set Plan individual requirement in MD61 ( maintain strategy group in MRP 3 first)

Then same thing you can generate STR based on the planned qty.

2  If there is no any planned data (above mentioned),  the requirements only come from sales order.

This case the sales order cannot be confirmed immidiately, since your MRP always runs later than the requirement , there will  no any STR propose, and no quantity can confirm.

you have to change sales order again or use V_V2 to refresh in the 2nd day.

If not refresh the sales order, as you said, there do have risk the other order can confirm the stock.

[former_member268576]

Hi.

I rode that Global ATP with APO can change plant automatically.

May be a new software you need.

[gautams1]

Dear Experts,

I have a similar requirement where need to create cross company STO from sales order. Would you please let me know the Setting & step which create a STR from sales order.

Second: we want to create a single STO through some job overnght which will club the STR   which are going to same destination.

Please guide how to achieve this.

Regards,

Gautam S

[Former Member]

Any more ideas for my problem? Appreciate for all your help.

[former_member205178]

Hi,

Dont go with too many possible scenarios. Follow the actual business process and in this case Ju Yang has the right idea.

You dont want to go with one complicated custom solution to another one.

Thanks.

[Former Member]

Subramanyam,

                      I thought a sloution for this. I am not sure will this work or not. As you mentioned above you can use the third party shipment for this scenario. Coming to cost you can create a manual condition to discount the extra frieght charge. But question is creating manual condition and giving control to business as it is manual condition.

[Former Member]

Hi Raki,

Could you please elaborate your suggestion?

We don't want to use third party shipments for this process. We deliver using our own trucks (which will service only the customers belonging to that plant).

If we decide to deliver the part from customer's default plant and if there is no stock in this plant, we get the part from the other plant. Once the part comes into the default plant, we deliver using our own trucks.

Not sure how the third party shipment process helps us here

Thanks!

[Former Member]

Subramanyam,

                        Let us assume there is no stock in default plant. Now in this scenario you have to manually change item category to TAS and when you save your order. Purchase requisition will be created automatically and purchase order is created. during the creation of purchase order delivery address will be automatically copied. As the vendor in this case delivering plant will directly ship to the customer. if you want to adjust the freight charge you can create a manual condition to do so. I don't understand why you need to bring the stock to default plant..let me know if I am missing something..

[Former Member]

Every plant maintains their own trucks. Goods to customers surrounding any plant will  be delivered using these trucks.

Let's say Plant A is in North California......Plant B is South California. We use trucks in Plant A to delivery goods to Customers in North California(close to Plant A).

Trucks in Plant B can't deliver products to Plant A customers. We put trucks to run once or twice a day, between Plant A and Plant B (to full orders in Plant A when stock is not available)

This is why we thought of using this process.

[moazzam_ali]

Hi

I dont know whether this would be a good option for you or not but you can maintain customer material info record in case you don't have stock in default plant. In this case system will determine that plant in which you have stock. Or if you want it more simple you can change plant in order at item level.

Why do you create PR STO and why this lengthy process just to bring material from one plant to other?

For moving stock from one plant to other you can user STR STO process but that would be independent process and there would be no link with sale order.

Thank$

[Former Member]

Hi MoazzaM,

Thanks for the response.

We have lot of material and lot customers. Any customer can place order from another plant for any plant. And we also have nearly 20 plants. In this way, we can end up maintaining tons of customer/material info records.

Independent STO process looks good but there is no relation to sales order. Also, want to see how the stock deductions happen from sales order (as orders needs to block the stock in the supplying plant)

Thanks!

[former_member205178]

Hi,

Ju has illustrated what could be a shortened process without going through all the hoops.

I would just like to look at this from a different perspective. To be able to possibly provide better design and more efficient solution, my questions to you to are as follows:

1)  While I understand the reason to have a default plant in the customer master is to default it in the Sales Order, it is not necessary to only supply from there. Is there a different reason for you guys to be looking at only that plant ?

2)  Are you also reserving certain specific stock for the customer ?

3)  Are your stock scenarios -> Made to Order/Assemble to Order OR Made to Stock ??

Might have other questions but these are for starters.

Thanks.

[Former Member]

Hi Dee,

Thanks for your response. here are the answers to your questions

1) Apart from third party carriers, we also deliver using our own trucks. So we delivery parts to the Customers surrounding (close-by) a plant using our trucks.

If we deliver parts to customers from other plants (when there is no stock in his default plant), we either get the stock into his default plant or use third party carriers. If it is third party carrier, customer will end up paying extra freight charge.

If we used this process of getting stock into the default plant, he can avoid freight charges

2) We are not reserving stock for any customer (except when he places these kind of cross-dock orders....where stock will be reserved for that sales order only)

3) We have only make to stock

Looking to simplify this process

thanks!

[former_member205178]

Hi,

My two cents here.

Based on what you have answered your best bet is what Ju has indicated. That is the simplest form of business process.

If you have ATP and MRP working this would easily work. It would involve hand shake and hand holding for some length of the process but that you are pretty much doing today too.

You do not have any need of Customer Specific Stock and your is not a Made to Order Scenario.

Thanks.

[former_member186385]

Hi,

If you could let us know what kind of error you are facing during your process, we can sort out them. As I believe, the process you are following is standard replenishment to move stock between two plants

We need one more clarification on Billing, when you move the stock from supplying plant to default customer plant, are you generating MIRO for supplying plant ( IR ?). If so this is correct process, just you have to fine tune the process if you have any master data or Batch Job issues

If there is no IR concept, then you can use Movement type 301 for plant to plant stock transfer. This involves a manual activity a bit

hope it is clear

regards,

santosh