make to order

[Former Member]

hai

this is subhash, can any body tell the exact flow of make to order scenario

and consignment process

thanks

subhash

[Former Member · Accepted solution]

Hi Subhash,

Make-to-order:

Make-to-order processing takes place when inventory is not generally stoked but instead the firm wants until an order hass been placed and then produces just what has been ordered.

Ex: In this case, a deluxe motorcycle gas tank that must be produced form an unpainted tank, paint and gas cap. These are two processes that must be completed in the production -

---

paint the tank and when tank is dry, attach the gas cap.

The BOM are needed to create a given product. The routing information gives what processes need to be carried out in what order and even how long each process should take. All this information together can be used to determine what the total cost of the product and determining the profitability of the product.

A—Creation of materials:---

T code: MM01

Ex; 1400-7—1xx

Enter material, ind. Sector and material type.

Select the org. levels plant, stor. Location, sales org, DC, Warehoused no, storage type.

Repeat the same process for all components.

B—Creation of BOM:--

T code: CS01

C—Set up routing:--

T code: CA02

D—pricing conditions:--

T code: VK11

E—purchasing materials:--

Create a purchasing order req. for components from vendor.

Create PO: ME21

F—Receiving materials:--

GR:- MIGO

Go through MMBE then u will get stock available or not.

Process:

1. creating a sales order for product not kept in the inventory. This will atomically generated the relevant production order.

2. we assume production is done ahead of \schedule. After production is completed you will confirm production order as fully completed .

3. Newly determine the availability of sales order.

4. shipment

5. TO for delivery

6. Billing

7. Payments

Req. Class: Its a global control parameter for avalability check. It controls rerq. consumption strategy and req. planning strategy.

11-- order req.

21-- delivery req.

41-- order/delivery req.

Req. type:- It specifies features of require,ment class. It is one of the controling feature in TOR

In TOR we can assign req. type to req. class

Reward points pls.

Regards,

Govind.

[Former Member]

Hi Subhash,

Please e-mail me your Mail ID and I will e-mail you the entire process of the Make to Order Scenario..

Regards

Atul Keshav

[Former Member]

Dear Subhash,

A small search on SDN SD forum will help you to answer your query.

I will suggest you to visit http://sap-img.com/sap-sd.htm. It will give you the overview of SAP SD module.

Moreover there is a separate section of FAQs with answers which will help you in great deal.

Hope this helps you.

Do award points if you found them useful.

Regards,

Rakesh

P.S. you can send me a mail at my mail id rakeshsinghchauhan@gmail.com for any specific details

[Manoj_Mahajan78]

Subhash,

Consignment Sales Process in SAP

The consignment process in SAP standard consist of four small processes:

Consignment fillup (send materials to customer consignment).

Here you have a consignment fillup order and a consignment fillup delivery.

Consignment issue (issue materials from customer consignment to the customer).

Here you have a consignment issue order, consignment issue delivery and a consignment issue invoice. (the flow is very similar to a normal OR flow, but the materials are issued from the consignment stock instead of plant stock unrestricted).

Consignment return (return materials from customer ownership to customer consignment).

Here you have a consignment return order, consignment return delivery and a consignment return invoice. (the flow is very similar to a normal RE flow, but the materials are returned to the consignment stock instead of plant stock returns).

Consignment pickup (pickup consignment stock and move it to plant stock).

Here you have a consignment pickup order and a consignment pickup delivery.

Note that in consignment fillup and consignment pickup there are no invoices since there is no change of ownership for the materials.

How to perform a consignment order?

In consignment orders you are allowing the stock to sit in your customer location. Once he informs that he used the stock you will invoice him. If he returns the stock you will accept the stock to take it back.

It is defined in 4 steps.

1. Consignment fill up:

Sales document type is KB

Item category KBN

shedule line category E1

In this step, you are not invoicing the customer. document flow is sales order -

---

delivery item category. It will not be relevent for billing and pricing because you are not charging money for these goods in this step.

In schedule line category, you will set movement type 631 & set for availability check and TOR.

2. Consignment Issue.

Once the customer informed you that he used all the goods or partial goods then you will create consignment issue for used goods.

Sales document: KE

Item category: KEN

shedule line category: C0 or C1

Here you are invoicing the customer(because he used the goods). you are assigning the delivery documnt and billing document to the sales document.

In item category, you are setting relevent for billing, pricing, special stock.

In schedule line category, your setting is 633 movement type, relevent for availability check & TOR.

3. Consignment Return:

Customer found that some goods are damaged or he not able to sold the goods he want to send it back. that you are creating this document.

Sales document type: KR

Item category: KRN

Shedule line category: D0

You will assign delivery document and billing to sales document. you will create return order, return delivery, return billing.

Your setting item category relevent for billing, returns, pricing, special stock.

Your setting schedule line item category: 634 movement type, NO availability NO TOR.

4. Consignment Pick up:

Even if you create the consignment return the goods are not come to direct to your plant. For that you need to create consignment pick up. here the owner ship is not changing so you do not need to create billing.

Assign retrun delivery to sales document type.

Sales document: KA

Item category: KAN

schedule line category: F0 & F1

Your setting item category relevent for returns. any shedule line category relevent for 632 movement type, MRP, availability check, delivery.

Now you check your plant stock. Stock will increase

Make to order Scenario

1. Make-to-order production is a process in which a product is individually manufactured for a particular customer. In contrast to mass production for an unspecified market where a material is manufactured many times, in make-to-order production a material is created only once though the same or a similar production process might be repeated at a later time.

2. You can use make-to-order production: (a) For branches of industry or products where a small quantity of products with a large number of different characteristics are manufactured (b) When a product has to be assembled particularly for a sales order.

3. Stock keeping is not usually carried out for products that are made to order. In companies using make-to-order production, the demand program only determines the production area, in which various variant types are produced. Depending on how you track the costs associated with make-to-order production, there are two ways to process make-to-order items during sales order processing.

(a) Make to order using sales order

(b) Make to order using project system (not relevant for SD application)

4. for make to order production using the sales order, all costs and revenues involved for an order item are held collectively at that item. A particular rule is used that can be changed manually to transfer costs to profitability analysis.

5. make to order production is largely a production planning configuration. It is also controlled by the requirements type, which is determined by three things

the strategy group (MRP 3) in MMR

the MRP group (MRP1) in MMR

the item category and MRP type (MRP 1)

6. Make-to-order production is controlled by the requirements type. The requirements type is determined on the basis of the MRP group (MRP1) and the strategy group (MRP3) in the material master record. In addition, a plant must be assigned for make-to-order items in the sales order.

MAKE TO ORDER PRODUCTION ( PROCESS FLOW )

First Create a material with MM

Basic data1:

Give Material name : Cycle

Material group : 010

Division : MA

Net Weight : 10 Kg's

Gross Weight : 10Kgs.

Sales: Sales org.1 :

Base Unit of Measure : EA

Delivering Plant : RAMA

Output Tax : 1 ( Full tax)

Sales: General/Plant :

Availability Check : 01 ( Daily Requirements)

Trans.,group : 001

Loading Group : 0003

MRP 1:

Mrp Group : 020 ( Make to Order Production)

Mrp type : PD (MRP)

Mrp controller : 000

Lot size : EX ( Lot-for-Lot order quantity)

MRP 2:

Inhouse Production : 1

Schedule Margin Key : 000

Forecasting:

Forecast Model : D (Constant Model)

Accounting 1:

Price control : V ( Variable Price)

Variable Price : 4000

Price Unit : 1

Then enter & Save.

Material 769 created.

Create a Sales order with VA;

Order type : OR

Sales Organization : RAMA

Distribution Channel : RA

Division : MA

Sales Office : RAMA

Sales Group : RAM, .............. Enter

Sold to Party : 6000000000

PO number : 55 , PO Date : 04.06.2007.

Item Overview Tab:

Material 769, Quantity : 100

Enter & Save the Document.

Sales Order 8212 Created

Create Production Order with CO:

Enter Sales order number: 8212, Item No. 10

Order type : PP, Enter

Click on FLAG,

Select Generate Operation and enter NO,

save the Document.

Production Order Created : 60002725

Confirm the Production Order with CO15.

Enter Production Order No. 600075 and save the Document.

Now the confirmation Order will be saved.

Create Goods Receipts with MB31.

Movement type : 101

Order : 6002725

Plant : RAMA

Storage Location : RAMA

Enter and Save, you will get Document Posted : 50000068931posted.

Check the Stock Position with MMBE

Material : 769

Plant : RAMA

Storage Location : RAMA

Execute (F8), Here we can see the stock at Sales Order Stock.

Create Delivery with VL01N, Billing with VF01 and Post to Accounts.

REWARD POINTS IF U FINDS THIS AS USEFUL....

Regds

MM

[Former Member]

How could I create production order from stock transport order?

We use STO from one intercompany A to another B.

We have make to order production in the source company B.

We would like to use Stock transfer order (NB based on Purchase order) as a trigger to start production at site B.

is it possible like to create production order from sales orders using TAS item category?

[Former Member]

Hi adi

Did you ever get an answer on how to do make-to-order from STO?

/Paul

[Former Member]

Hello Paul

Sorry for a late reply.

The answer is no.

BTW the Z Batch input was created that create Production Orders (MTS strategy), but inserts reference STO in the reference field of the production order.

Did you solve this issue?

Best,

Eddie

[Former Member]

Refer below reward if helps

<b>Consignment Sales Process in SAP</b>

The consignment process in SAP standard consist of four small processes:

Consignment fillup (send materials to customer consignment).

Here you have a consignment fillup order and a consignment fillup delivery.

Consignment issue (issue materials from customer consignment to the customer).

Here you have a consignment issue order, consignment issue delivery and a consignment issue invoice. (the flow is very similar to a normal OR flow, but the materials are issued from the consignment stock instead of plant stock unrestricted).

Consignment return (return materials from customer ownership to customer consignment).

Here you have a consignment return order, consignment return delivery and a consignment return invoice. (the flow is very similar to a normal RE flow, but the materials are returned to the consignment stock instead of plant stock returns).

Consignment pickup (pickup consignment stock and move it to plant stock).

Here you have a consignment pickup order and a consignment pickup delivery.

Note that in consignment fillup and consignment pickup there are no invoices since there is no change of ownership for the materials.

How to perform a consignment order?

In consignment orders you are allowing the stock to sit in your customer location. Once he informs that he used the stock you will invoice him. If he returns the stock you will accept the stock to take it back.

It is defined in 4 steps.

1. Consignment fill up:

Sales document type is KB

Item category KBN

shedule line category E1

In this step, you are not invoicing the customer. document flow is sales order -

---

delivery item category. It will not be relevent for billing and pricing because you are not charging money for these goods in this step.

In schedule line category, you will set movement type 631 & set for availability check and TOR.

2. Consignment Issue.

Once the customer informed you that he used all the goods or partial goods then you will create consignment issue for used goods.

Sales document: KE

Item category: KEN

shedule line category: C0 or C1

Here you are invoicing the customer(because he used the goods). you are assigning the delivery documnt and billing document to the sales document.

In item category, you are setting relevent for billing, pricing, special stock.

In schedule line category, your setting is 633 movement type, relevent for availability check & TOR.

3. Consignment Return:

Customer found that some goods are damaged or he not able to sold the goods he want to send it back. that you are creating this document.

Sales document type: KR

Item category: KRN

Shedule line category: D0

You will assign delivery document and billing to sales document. you will create return order, return delivery, return billing.

Your setting item category relevent for billing, returns, pricing, special stock.

Your setting schedule line item category: 634 movement type, NO availability NO TOR.

4. Consignment Pick up:

Even if you create the consignment return the goods are not come to direct to your plant. For that you need to create consignment pick up. here the owner ship is not changing so you do not need to create billing.

Assign retrun delivery to sales document type.

Sales document: KA

Item category: KAN

schedule line category: F0 & F1

Your setting item category relevent for returns. any shedule line category relevent for 632 movement type, MRP, availability check, delivery.

Now you check your plant stock. Stock will increase

<b>Make to order Scenario</b>

1. Make-to-order production is a process in which a product is individually manufactured for a particular customer. In contrast to mass production for an unspecified market where a material is manufactured many times, in make-to-order production a material is created only once though the same or a similar production process might be repeated at a later time.

2. You can use make-to-order production: (a) For branches of industry or products where a small quantity of products with a large number of different characteristics are manufactured (b) When a product has to be assembled particularly for a sales order.

3. Stock keeping is not usually carried out for products that are made to order. In companies using make-to-order production, the demand program only determines the production area, in which various variant types are produced. Depending on how you track the costs associated with make-to-order production, there are two ways to process make-to-order items during sales order processing.

(a) Make to order using sales order

(b) Make to order using project system (not relevant for SD application)

4. for make to order production using the sales order, all costs and revenues involved for an order item are held collectively at that item. A particular rule is used that can be changed manually to transfer costs to profitability analysis.

5. make to order production is largely a production planning configuration. It is also controlled by the requirements type, which is determined by three things

the strategy group (MRP 3) in MMR

the MRP group (MRP1) in MMR

the item category and MRP type (MRP 1)

6. Make-to-order production is controlled by the requirements type. The requirements type is determined on the basis of the MRP group (MRP1) and the strategy group (MRP3) in the material master record. In addition, a plant must be assigned for make-to-order items in the sales order.

[Former Member]

Hi,

Consignment Stock Processing:

Consignment Stock Processing

Purpose

Consignment goods are goods which are stored at the customer location but which are owned by the company. The customer is not obliged to pay for these goods until they remove them from consignment stock. Otherwise, the customer can usually return consignment goods that are not required.

Consignment Fill-Up: Consignment fill-up replenishes the stock at the customer site. Since the goods remain the property of the company, this process is not relevant for pricing and consequently not for invoicing either.

Create a sales order using order type KB.

Enter the required data on the customer, the consignment goods and the delivering plant.

Enter all other relevant data and save the order.

Create a delivery as the subsequent document for this sales order and, after picking has been completed successfully, post goods issue.

The underlying goods movement type is a stock transfer. This ensures that when goods issue is posted, consignment special stock is created for the customer concerned. If special stock of this kind already exists in the delivering plant for this customer, the goods are posted to this special stock.

Order type: KB (document category C: sales order)

Std. Delivery type: LF

Item category: KBN (not relevant for pricing and billing)

Schedule line category: E1 (relevant for deliveries, uses availability check, 631 (GI consignment: lending) to post the stock into a special consignment category in the delivering plants stock for that particular customer and material)

Copy control rules for the sales doc, item category, and schedule line category.

Use trans MB58 or MMBE to check the stock.

Consignment Issue: The Consignment issue enables the customer to withdraw consignment goods from the special stock that are to be used or sold.

Create a sales order using order type KE.

Enter the required data for the customer, the consignment goods and the plant to which the goods are to be returned.

Enter all other relevant data and save the order.

Create a delivery as the subsequent document for this sales order and, after picking has been completed successfully, post goods issue.

The goods are then reduced by the relevant quantity in the special stock assigned to the customer. This goods issue also reduces your total stock.

Invoice the delivery which issues the consignment goods.

Order type: KE (document category C: sales order)

Std. Delivery type: LF

Invoice: F2

Item category: KEN (relevant for pricing and deliver related billing, special stock indicator W, should determine cost too)

Schedule line category: C1 (relevant for deliveries, uses availability check, 633 (GI issue: customer consignment)

Consignment returns: proceed as follows: Consignment returns enable your customer to return goods to the consignment stock that has already been issued from it.

Create a sales order using sales order type CR.

Enter the required data on the customer and the consignment goods.

Enter all other relevant data and save the order.

Create a returns delivery for the sales order (the system automatically chooses delivery type LR). The goods issue posting cancels the goods issue posting which was carried out when the consignment goods were issued. This posting records the return of the goods to the plant where goods receipt was carried out.

Create a credit memo for the consignment return you created in Step 1.

Order type: KR (document category H: returns)

Delivery type: LR

Credit for Returns Order type: RE (delivery or order related billing)

Item category: KRN (relevant for pricing and deliver related billing, special stock indicator W

Schedule line category: D0 (relevant for deliveries, no availability check, 634

Consignment Pick-Up: The company uses consignment pick-up to take back consignment goods that are faulty or excess materials that the customer does not need. This process is not relevant for billing since the goods remain the property of the company.

It may be beneficial to have a mandatory reference such as the consignment fill-up. In addition to it copy control rules can be used to further control it. In the copy control rules indicate the document flow. As the stock is coming back into the warehouse or plant, you can specify a returns shipping point to be automatically determined. No invoice is necessary, as the goods are not changing ownership.

Create a sales order using order type KA.

Enter the required data for the customer, the consignment goods and the plant to which the goods are to be returned.

Enter all other relevant data and save the order.

Create a returns delivery for the sales order (the system automatically chooses delivery type LR). The transaction is completed by the goods issue posting which initiates a transfer posting from the customer's special stock to your plant stock.

Order type: KA (document category C: sales order)

Delivery type: LR

No invoice

Item category: KAN

Schedule line category: F1 (relevant for deliveries, availability check against the stock on the customer’s consignment, 632 (Consignment pickup)

Reward points if useful

Regards,

Amrish Purohit

[Former Member]

Hi,

MTO Planning strategies are specific to sales orders

costs need to be tracked at sales order level

No specific product structure ie item may or may not have Bom

Settings for finished product

1. strategy group 20

2. schedule line category cp ,item categiry TAN, item category group NORM

3. Requirements type KE

4. No PIR Creation

5. So procurement before sales order is not possible

6. sales orders are created for finished product

7. Run the MRP - MD02

8. Planned orders will be created.

9. convert it to production orders /confirm /GR is made

10 stock will be placed in customer stock.

Regards,

nandha