Make to Order and Individual Purchase Order ( MTO & IPO)

[Former Member]

Hello Gurus,

1. Can anyone let me know what is Make to order (MTO)and Individual purchase

order (IPO) and the Differences between both?

2. What is the purpose of MTO and IPO and where it is used.

I would be thankful if anyone can provide me the meaning of both.

Prashant V.T (PVT)

[Former Member]

indiviual purchase order :

the scenario is that customer orders goods to the buisness and the buisness inturns orders a vendor to make the goods for them and instead of delivering directly delivering to the customer delivers to the buisness and the buisness supplies to the customer ,this step makes the process a differentiating one from "third party sales order".

there is no seperate t:code for that but the item categorygroup of the material is

BANC. The item category is TAB.

make to order :

in this scenario the production process is triggered by the order from the customer

and not from the past history of sales. it is a customised process and rather unique to a larger extent.

difference :

the whole process is inhouse whereas the indivual p.o it is totally external.

reward points if helpful

sriram.

[Former Member]

Hi Prashant,

MTO : Make to Order means the Production of the Material starts after getting the sales Order.

Means once the Sales Order raised for any particuler customer then based on that order production / procurement takes place, and the stock what ever produced will be restricted for that Order only. The Stock cant be used for any other orders.

where as IPO is different.

IPO : Individual Purchase Order is like Third Party Sales but with a difference. In Third Party Sales, after getting the Sales Order a Purchase Order is raised to vendor and vendor will supply directly to the customer, and the Ordering compnay will raise the Invoice to the customer once the customer received the stock from vendor.

IPO is similer but the difference is vendor will send the stock to the company instead of direclty sending to the customer. And the actual compnay will take the stock and do the delivery / shipping/ invoice to the customer.

MM T.codes MIGO, MIRO plays crucial role in these type of scenarios.

Hope this gives you some idea.

REWARD IF HELPFUL.

Regards,

Praveen

[Former Member]

Hello Praveen,

Thanks for replying. Is there any tcode for ipo?

with regards

Prashant V T (PVT)

[Former Member]

Hi Prashant,

There wont be any specific T.codes for IPO.

As I said its like Third Prty Sales only, but will be doing goods receipt in IPO using the T.code MIGO.

Where as in Third prty we wont do this.

Once we do MIGO means we received goods from vendor, and our stock position will update, we will do delivery / shipping /invoice subsequently.

Hope this is clear.

REWARD IF HELPFUL.

Regards,

Praveen