Make to order scenario to Sales BOM

[former_member185462]

Hi,

Currently our client is having make to order scenario, at the order stage costing is done based on prices received in costing we have to fix the base price for customer in order to have profit margin.

Now the client requirement,they does not want to have PP activity,they wanted to do it make to stock process .

So directly in the order stage itself ,they want to create selling item as sales BOM with sub items as raw material.Based on the cost of sub item,we have to fix price for main item with some margin,how can we do this.

Have referred the below document

If any other solution kindly provide.

Pradeep

[former_member183879]

Hi Pradeep,

You are basically moving from Made To Order scenario to Made to Stock scenario.

In MTO, the costing is based on the Order based procurement or Order based production. The real cost of production / procurement will be used in the specific sales order. Based on this cost, you calculate the price.

But in MTS, costing is based on Standard cost / Moving average etc and not based on order based BOM and its sourcing cost. The stock material costing is based on the procurement of those materials which is independent of the cost at the sales order. The stock material procurement / production will have total inventory and value and hence the Moving price. This cost comes as cost in SO.

So, you should ideally use a pricing procedure to ensure correct calculation of price in both the cases. In either of the cases, cost is added only when the actual cost is incurred.

You should really think of all these implications while configuring your pricing scenarios.

[Former Member]

Hi,

Why are you not following the document that you have already referenced ? I think that is very good and easy to implement with less or no customization.

regards,

Sagar Wagh

[former_member185462]

Hi Sagar,

Through that document we could not manually change the price at Main item level based on price of sub item.After trying out only,i am asking.

[former_member182378]

Pradeep,

From my understanding, the document explains how to calculate price at main item level, this price shall be the total of the costs of the sub items.

In addition to the above, what is your requirement. Could you please give one example?

[former_member185462]

The costs are,

Sub -Item 1=13

Sub -Item 2=17

Main item =13+17=30

Now we come to know the cost will 30,a margin of 5 should be fixed,so selling should happen at 35

This is my requirement.

[former_member182378]

Pradeep,

Till main item = 30, it is clearly explained in the attached document. Do you find any issues till here?

Condition type ZDUM

After this condition type you can add another condition type for the margin (5). This could be manual or automatic (with condition record).

Then Net price (as description) in the pricing procedure.

[Former Member]

Hi, what is the Material(FERT/KMAT) let us know?,

If he wants to show he raw material as BOM, what is the Inventory accounting to be happened?

let clarify this points from the client, then we can provide him the solution.

Regards,

Abdul Rahim

[former_member185462]

Hi,

FERT is the material type.

Inventory accounting should is a normal pattern only.

Pradeep

[Former Member]

Hello, I mean to say that whether PGI should be done for only subitem or main item (601).

[former_member185462]

PGI for sub-item.