Dear Experts
I have a query regarding settlement in MTO scenario.
Below is the Scenario:
We have 4 stages of production, first 3 stages will be producing semi finished products and the 4th stage is to produce Finished material.
First 3 stages are Make to stock and only the 4th stage follow Make to order.
Is it really mandatory to settle the production order of Stage 4 to sales order?
If yes, finally do we need to settle the sales order to a material account?
In the forum some answered "if Profit center is an account assignment in sales order, we don't need to settle the production order to sales order".
ie., Sales order is not a cost object.
We use the MTO at Stage 4 only to identify and maintain stocks against specific customers.
So, can we follow same settlement process followed for first 3 stages(Production order settled to Material) to Stage 4 as well? (and No settlement involved for Sales orders)
Please give me some guidence.
Thanks in advance.
Regards
Bala