Make to Order with Variant Configuration

[Former Member]

Gurus,

Could you please help me with your inputs.

We are using make-to-order with variant configuration. Below is the business scenario. How can this be handled in SAP.

Below are the details.

Plant 3000, Company Code 1000, Sales Org 2000.

Plant 3100, Company Code 1100, Sales Org 2100.

Material A (KMAT)

Material B (KMAT)

Material B is a component of Material A.

Plant 3000 receives a sales order from the customer for Material A. But, it has the capability of only making Material B. So, Plant 3000 completes manufacturing of Material B and ships it to Plant 3100. Plant 3100 consumes Material B to produce Material A. After completion of production, Plant 3100 ships Material A directly to the customer and bills Plant 3000 for the value addition and freight charges. Plant 3000 bills the customer for Material A.

The variant details for both Materials A and B are given by the customer. But Sales order has only Material A as a line item in Plant 3000. How will the demand and variant configuration details for Material A get transferred from Plant 3000 to Plant 3100? Material A is supposed to drive demand for Material B in Plant 3100. How will this happen? In turn, how will the demand and variant configuration details for Material B get transferred from Plant 3100 to Plant 3000?

There could also be cases where Plant 3100 makes both Material A and Material B in situations where Plant 3000 does not have the capacity to make Material B.

Thanks & Regards,

R

[Former Member]

Hi Santhosh,

Thank you for your inputs.

We have another process which is being used in one of the other manufacturing plants (Plant 3010, Company Code 1000, Sales Org 2000). We have the same Material A and Material B which are variant config KMAT materials. We have a BOM in which Material B is a component of Material A. Sales Order is received in Plant 3010 with Material A as line item. All the variant config details are entered in the sales order line item of Material A. Both Materials A and B are manufactured within the same plant, company code and sold to the customer from the same plant. Materials A and B are setup as collective order. So, once the sales order for Material A is saved, it creates 2 production orders, one each for Material A and Material B. Another point that I would like to mention about the above process is, both the materials A and B don’t have either the Strategy Group or the MRP Group populated in the material master. I think this is being handled on the SD side. But we have Procurement Type (E), Special Procurement (52) and Individual/coll. (1) populated in the material master. But my process is slightly different and it involves inter-company as well.   

Now coming back to my process, I have added comments to your responses in RED.

At first create the sales order with MATERIAL A and maintain Relevant settings in the Material master such as Strategy group and MRP group with Plant 3100.

Which strategy should I use? Will 82 work? What kind of fields should I activate within the MRP group? If this is currently being handled in SD side will my config override it or is it better to be handled from SD side itself. How will I specify the production plant as 3100? Should I configure a special procurement key? Also will the variant configuration details for Material A get transferred from the sales order created in Plant 3000 to the corresponding production order created in Plant 3100?   

This will create a production order with sales order stock and in the production order add the component as Material B.

Can I setup a BOM in Plant 3100 for Material A with Material B as a component? Do I also need a BOM set up for Material A in Plant 3000?

In the Production order ensure you add the component with Item category N which will create a PO to the Plant 3000.

Should Material B be setup with Item Category “N” in the BOM of Material A in Plant 3100? Do we need a separate BOM setup for Material B in Plant 3100? How or from where will Material B in Plant 3000 get the variant configuration details to carryout production? Also, what should Material B in Plant 3100 have for Strategy Group? Procurement Type will be F. What about Special Procurement Key?

Follow normal MM flow to consume the material into the Production order which will post the cost as well to production order for consumption of Material B.

You mentioned setting up Material B with Item Category “N” in Plant 3100 which would be a non-stock item. But it would be a stock item in Plant 3000 as it is being produced there. Will there be any issues when receiving Material B from Plant 3000 to 3100?

Thanks & Regards,

R

[former_member186385]

Hi ,

This can be achieved with SD and PP /MM integration

At first create the sales order with MATERIAL A and maintain Relevant settings in the Material master such as Strategy group and MRP group with Plant 3100

This will create a production order with sales order stock and in the production order add the component as Material B .

In the Production order ensure you add the component with Item category N which will create a PO to the Plant 3000 .

Follow normal MM flow to consume the material into the Production order which will post the cost as well to production order for consumption of Material B

you can settle the actual cost of Production order ( includes Material A+ Material B cost with any overhead) to Sales order

this cost can be reflected in the sales order in EK01/EK02 condition type. Modify your pricing procedure accordingly to get these costs

As a mark up you can add your profit on EK01/EK02 cost and sell the material to customer

Here customer delivery will only contain Material A ( which includes Material B consumed internally during production)

hope it clarifies your requirement

revert back if you need any further help

thanks

santosh