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SAP Community Network Forums SAP Solutions ERP - Sales and Distribution (SD) General Thread: MTO Scenario

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Replies: 8 - Pages: 1 - Last Post: Nov 2, 2011 6:42 AM Last Post By: Rajashekar Reddy
Rajashekar Reddy
Posts: 173 Registered: 12/3/07

MTO Scenario
Posted: Feb 18, 2008 5:25 AM

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Forum Points: 66

Hi All, Can anyone plz guide me with the steps involved in a MTO scenario.
Rgds, Raj..

Lakshmipathi
Posts: 21,113 Registered: 8/9/07

Re: MTO Scenario

Posted: Feb 18, 2008 5:33 AM in response to: Rajashekar Reddy

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Forum Points: 41,076

Dear Rajashekar check the link

Make-To-Order Production

thanks G. Lakshmipathi

Anil kumar
Posts: 119 Registered: 2/14/08

Re: MTO Scenario

Posted: Feb 18, 2008 5:51 AM in response to: Rajashekar Reddy

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Forum Points: 126

Hi, Please check these are the steps to follow, also one of our friend gave you the link which is also helpful also. 1 Create Sales Order Customer specific product sales Order Sales VA01 Sales Order is created 2 Execute Sales Order MRP Run Planned Requirements for materials need to be updated Production Planner MD50 Planned orders, purchase requisitions and exception messages 3 Multilevel Order Report Check Planned orders Production Planner MD04 Multilevel order report is displayed 4 Procurement Of Bought Items C1A Procure to Stock Components in stock for Manufacturing C1A Scenario C1A Scenario C1A Scenario 5 Convert Planned Order to Production Order Production Process to start Production Planner CO41, CO40 Production Order is created 6 Capacity Leveling When manual changes are required Production Planner CM28 / CM01 Capacity leveled 7 Goods Issue Once components have been delivered to the manufacturing floor Warehouse Clerk MB1A / MB26 Goods issue (material document) of components 8 Completion Confirmation for Production Order Once all operations have been completed Manufacturing CO11N / CO12 / Confirmation of all operations 9 Goods Receipt for Sales Order stock When the manufactured material arrives at its Production storage location Manufacturing MB31 Goods receipt (material document), with sales order stock 10 Delivery Creation Delivery for Sales Order Stores VL10C Delivery is created 11 Post goods Issue Goods issue to Customer Stores VL06G Goods Issued to Customer 12 Billing Billing for receivable Sales / Accounts VF04 Billing is Made & released to accounting 13 Excise Invoice Preparation Excise invoice for Goods Excise Accountant J1IIN Excise Invoice is created 14 Incoming Payment D1F- AR-Customer Incoming Payment Refer D1F Scenario Refer D1F Scenario Refer D1F Scenario 15 Period End Closing D1L- Period End Closing Refer D1L Scenario Refer D1L Scenario Refer D1L Scenario If you feel it is useful for you reward points, bye Anil Bye

Guest

Re: MTO Scenario

Posted: Feb 18, 2008 8:06 AM in response to: Rajashekar Reddy

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03/01/2012 15:24

SAP Community Network Forums: MTO Scenario ...

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Hi Raj, Give me your E-mail id will mail you the entire scenario...

Ranjeet Rajendr...
Posts: 659 Registered: 11/29/07

Re: MTO Scenario

Posted: Feb 18, 2008 8:09 AM in response to: Rajashekar Reddy

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Forum Points: 1,076

Hiya
Make To Order

Also
Make-to-Order (MTO) Production Purpose The planning strategies explained in this section are designed for the production of a material for a specific individual sales order. In other words, you do not want to produce finished products until you receive a sales order. This means that make-to-order strategies always support a very close customer-vendor relationship, because your sales orders are closely linked to production. The same relationship exists between the sales order and production that exists in a make-to-order environment. Make-to-order is also used in the following environments. Production using variant configuration Assemble-to-order Prerequisites Choose a make-to-order strategy, if: The materials are segregated. In other words, they are uniquely assigned to specific sales orders. Costs must be tracked at sales order level and not on material level. Make-to-order strategies should always be combined with lot-size key EX (lot-for-lot. Rounding values should not be used. If you maintain rounding values, they have no effect due to the make-to-order properties of these strategies. Process Flow
There are extensive options that enable you to procure components especially for specific sales order items. You may, however, want to use a different planning strategy to procure components without sales orders. This allows you to keep your replenishment lead time to a minimum. You can do this by: Planning on the basis of the finished product (see Planning Without Final Assembly (50) or Planning with a Planning Material (60)) Planning at component level (see Strategies for Planning Components) Using consumption-based or Kanban-controlled components Customer stock can exist on any BOM level. See Stockkeeping at Different BOM Levels for more information. Because production is closely linked to sales orders, this results in a customer section in the stock/requirements list. Unplanned goods receipts (such as returns) cannot, as a rule, be used for other sales orders, even if they are in working order, unless they are adapted to meet a customer's needs. In the basic make-to-order strategy, Make-to-Order Production (20), no specific product structures are required. This means that it does not matter if the material has a BOM or not. The material can be produced in-house, or it can be procured externally. No planning is involved in this strategy. Planning Without Final Assembly (50) and Planning with a Planning Material (60) do require a specific product structure (i.e. a BOM, which means materials are always produced in-house). These planning strategies assume that you want to plan procurement (production or purchasing) of your components by planning the finished products. This means that you need to have a fairly stable demand for your finished products. If, however, you can plan more easily at component level than at finished product level, see Strategies for Planning Components. Keep Sapping

Rajashekar Reddy
Posts: 173 Registered: 12/3/07

Re: MTO Scenario

Posted: Feb 18, 2008 10:46 AM in response to: Guest

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Forum Points: 66

hi atul, rsreddy.sd@gmail.com is my id.will u please send me the steps involved in MTO process.
Rgds, Raj

Guest

Re: MTO Scenario

Posted: Feb 20, 2008 9:35 AM in response to: Rajashekar Reddy

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Hi Rajashekhar, I have e-mailed you the entire presentation please check the same and reward points if the same is useful to you.. Regards Atul Keshav

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Rakesh Singh Ch...

Posts: 1,599 Registered: 3/13/09

Re: MTO Scenario

Posted: Feb 20, 2008 10:06 AM in response to: Rajashekar Reddy

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Forum Points: 3,032

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03/01/2012 15:24

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Dear Raj, 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: In-house 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:

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Rajashekar Reddy
Posts: 173 Registered: 12/3/07

Re: MTO Scenario

Posted: Feb 22, 2008 5:53 AM in response to: Guest

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Forum Points: 66

Hi Atul, points have been rewarded 2 u

Pages: 1

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