Make to order scenario

[Former Member]

Hi Gurus,

I have got the following business scenario.

When customer places an order User can decide Which combination of materials should form an assembly.

Eg: Item no Material Quantity

10 A 1

20 B 1

30 C 1

40 D 1

Customer places an order for the above materials, User can decide whether he wants to include 10,20,30 as part of one assembly or he wants to include 10,20,30,40 as part of one assembly.

1. How can i handle this scenario?

2. In Make to order scenario, What are the next process steps?

3. What determines a material is Make to order material or not?

Thank you

Anil

[Former Member · Accepted solution]

Hi Anil!

Since your scenario is a Make to Order Scenario, I want to get cleared one thing from your example-

Does 10,20, 30 or 40 stand for the raw material/ semi finished material which is being assembled to make the finished product. If that is the case then you can follow the solution given below.

The finished material is determined as a MTO or MTS product by the Strategy you select in the MRP3 screen of material master. If you select 10 it is MTS product whereas if you select 20 it is a MTO product. There are other strategies also for MTO scenario.

Once you have defined the possible raw material and finished product then you have to create the material BOM [ PP module] with the Application 1. In this you create all the possible combination of the raw material to create the finished product. You can create an alternative BOM which will contain the other combination.

Once you receive a Purchase Order, you create an Order as normal case. On saving the Order a Stock Requirement list gets updated (MD04) which is viewed by the Production department. This is because the Requirement Type is KE in the Procurement Tab of the Sale Order which triggers the action. Based on that the MRP is run (MD02/ MD50). Then the Production Process is carried out like Production Order, Confirmation etc. After Confirmation the Stock is posted in the Storage location. Then we go to the chage Sales Order (VA02) and check the availabililty of the stock. Then the rest of the process remains the same i.e. Delivery- Billing.

Also you must take into account that the Condition type for Account determination in case of MTO scenario is KOFK.

If found helpful kindly reward points.

Regards,

Karthik

[Former Member]

Hi Karthik and Sai,

Thanks for your reply.

Sai, Variant configuration could be the potential solution to solve my problem, But it is out of scope in my project.

karthik, Thanks for detailed solution.10,20,30,40 are finished products, those can be sold independently also. Can you get me the solution in this case also.

Thank you

Anil

[Former Member]

Hi Anil!

So item numbers 10,20, 30 etc are all Finished Products. But they are assembled to form the finished product to be sold isn't it? Then also the scenario remains the same. Because the BOM for assembly production is defined by PP in Tcode CS01 with application 1. The sub items can be FERT also. But if you have the requirement that the selection is done at the order document level then you have to go for Variant Configuration only.

One more thing award points for the solutions given if found helpful. By giving points you also earn points and it also encourages others.

Regards,

Karthik

[Former Member]

Hi Anil,

The scenrario you are talking about is Make to order with variant configuration.

You can use make-to-order production in two scenarios -

(a) For branches of industry or products where a small quantity of products with a large number of different characteristics are manufactured (Variant Configuration).

(b) When a product has to be assembled particularly for a sales order (Individual Customer Requirement).

Please go through the following links for variant configuration.

[Steops for SD Variant Configuration|You can use make-to-order production in two scenarios - ]

[Variant Configuration Overview|http://www.slideshare.net/arun_bala1/variant-configuration-overview]

Reward points if helpful

Regards

Sai