Make to Order & Make to Stock

[Former Member]

Hi,

Can anyone send me the configuration steps in creating the MTO & STO. Iam interested to know the process.

Thanking you in advance

chan

[Former Member]

hi Adi

can u forward to me too.

krishnakishore.sap@gmail.com

cheers kishore

[Former Member]

Dear Adi,

I also need. Can u forward to me my mail id is

madalaprakash@gmail.com

Thanks in Advance,

m.prakash

[Former Member · Accepted solution]

Hi Hari,

Please find Complete Notes on STO( Stock Transfer Order) Below:

Stock Transfer Orders comes into picture when the stock is moving / Transferring between two different plants with two Different Company Codes or Stock Transfer between two plants with One Company Code the Difference are given below:

A. Configure Intercompany Stock Transport Order

Material should exist in both the plants (Delivering & Ordering),

Internal customer should be assigned to the ordering plant ( MM -> Purchasing -> Purchase Order -> Setup stock transport order -> assign the internal customer to the ordering plant and assign the Sales area of the internal customer.

Assign its Sales area to the delivering plant

Assign the document type and Delivery type NB and NLCC

Assign the Supplying plant --> Receiving Plant --> NB

Take the delivering plant and assign the sales area.

Vendor master has to be created and assign the supply source (Delivering Plant).

Create a purchase order ME21N ---> Save

Delivery VL10 G ---> Calculation rule (appropriate) --> Assign the purchase order number here and execute.

Select the Delivery creation line and do the back ground process.

Start the log display and see the delivery document number by the documents button

Goto VL02N --> do picking and PGI --> Then do the MIGO with respect to the delivery document.

Billing (Intercompany pricing conditions should be set).

AND

1. Customer No. for the Goods Receiving Plant - OMGN

2. Availability Check- Checking Rule (if necessary) - OMGN

3. Assign a Delivery Type for the Delivering Plant - OMGN (for Stock Transport Orders, NLCC)

4. PO type (which i believe you have done) - OMGN

5. Assign Vendor No. to the Supplying Plant (done) - VK02

6. Assign Customer No. to the Purchasing Plant for the Inter-Company Invoice (but you need to assign this to the Sales Organization pre-assigned to the Purchasing Plant),

IMG-SD-Billing-InterCompany Billing-Define Internal Customer No. by Sales Org

***and by the way for the Invoice to work between Cross-Company Plants, you need also to have a Sales Org for the Supplying Plant and a Pricing Determination Procedure

--

INTERCOMPANY PRICING:

PI01 Intercompany: fixed amount per material unit

PI02 Intercompany: percentage of the net invoice amount

These condition types specify that the price charged by the delivering plant to the sales organization is shown as a statistical value in the sales order and an effective charge in the internal invoice.

The condition records you create and maintain for intercompany billing are the same kind of records that you create for pricing in general.

IV01 Inter-company Price ERLOS Revenue

IV02 Inter-company % ERLOS Revenue

STO CONFIG:

The following steps have to be followed in order to configure stock transport order between two plants.

1. Create a vendor for the Company code of the receiving plant using account group 0007 via T-Code XK01.

2. In the purchasing data view assign the supplying plant and the schema group

3. Create customer with the sales area of the vendor.

4. The shipping conditions, the delivering plant and the transportation zone determine the route in the STO.

5. In the pricing procedure determination relevant to the STO assign document pricing procedure and customer pricing procedure to get the pricing in the invoice.

6. Maintain condition records for pricing condition.

7. Maintain carrier as a partner in the customer master.

8. In OMGN select the supplying plant and assign the company code and sales area. Similarly select the receiving plant and assign the company code and sales area (The company code to which the plant is assigned to).

9. Assign the delivery type and checking rule to the document type.

10. And finally, assign the purchasing document type to the supplying plant and the receiving plant.

11. Create the STO using T-Code ME 21N and save.

12. Check for release strategy if any and release using T-Code ME 28.

13. Create delivery in background using VL10G.

14. If delivery is created, it is an indication of correct configuration and master data creation.

Stock transfer between two plants in different company codes is known as inter company stock transfer.

Material should be maintained in both supplying and receiving plant MM01

Stock should maintain only in supplying plant MB1C

Create receiving plant as a customer in supplying plants company code and sales area XD01

Assign this customer number in receiving plant details OMGN

Assign supplying sales area in supplying plant details OMGN

Assign delivery type NB for in combination of supplying/ receiving plants.

Create STO ME21N

As it is normal there in the item details we should get shipping date i.e. customer number

Go for Delivery VL10B

Shipping point *****

Select PO go for execute

then select the delivery then go for delvy ............create delvy,,,, delvy number generated.

Goods Issue VL02

Delvy doc **********

Click on picking

enter the picking qty

Click on PGI

in the mean time check in the PO history you will get the details

Goods receipt MIGO

Stock overview the stock will be updated....

P.O Order types and Delivery Types

STO: - Stock Transfer Order – Intra Company

Stock Transfer between Two Plants with One Company code.

The Purchase Order Type is Used in this case is "UB".

And the Delivery Type Used here is "NL".

Goods Movement type: 641

Item Category in delivery is NLN

STPO: - Stock Transfer Purchase Order – Inter Company

Stock Transfer Purchase Orders between Two Plants with Two Different Company Codes.

The Purchase Order Type is Used in this case is "NB".

And the Delivery Type Used here is "NLCC".

Goods Movement type: 643

Item Category in delivery is NLC

Check the below link

http://help.sap.com/saphelp_47x200/helpdata/en/4d/2ba31643ad11d189410000e829fbbd/frameset.htm

Please Find Notes on MTO ( Make To Order) Below:

Make to Order:

A1. In this scenario, only manufacture/produce goods after getting the Order from the customer. Will not keep the stock in the plant or warehouse.

Ex: - BHEL - Bharat Heavy Electrical Limited.

After getting the order from customer only they will produce the goods.

and very important point, In SAP while doing this in item category Special stock indicator - E should be maintained in make to order scenario, where has the special stock indicator is not required for Make to stock sales.

Make to stock:

A manufacturing method in which finished goods are produced and stocked prior to receipt of a customer order. It uses a forecast based on past demand history to initiate production of end items when inventory has fallen below desired levels, instead of waiting until a final quantity and configuration is described on a customer order. It can be also defined in the following way A production environment where end item products are usually finished before receipt of a customer order. Customer orders are generally filled from finished goods inventories, and production orders are used to replenish finished goods inventories Manufacturing Engineering - The engineering discipline with responsibility for designing, maintaining, and improving the manufacturing production process.

Make to Order:

A production environment where a product or service can be made after receipt of a customer's order. The end item finished product is generally a combination of standard components and custom designed components that meet the unique needs of a specific customer. Where options or accessories are pre-stocked prior to customer orders, the term assemble-to-order is frequently used. Also known as assemble to order.

For configuration details please check this link:

MTO and MTS Configuration

MTO

MTS

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.

7. Make to order production means that the materials (finished products) are not stored in the warehouse but produced especially for a particular sales order or a sales order item. An individual customer requirement is generated from the sales order item and transferred to materials planning (MM/PP). You can use materials planning to plan requirements. Once this has been done, production is carried out. After the product has been manufactured, you post it by goods receipt to sales orders stock specifically for this sales order item. As soon as the delivery is due, you can enter the delivery in SD and post goods issue which reduces the sales order stock and then a billing document can be entered.

8. The item category in the sales document is found using the sale document type and the item category group from the material master found on the tab page sales org 2 i.e.

a. sales document type – OR

b. item category group – 0001

c. item category - TAK

9. MTO without assembly processing – the requirement quantity (planned independent requirements), delivery date and configuration specifications are transferred from the sales order to materials planning as an individual customer requirement. A planned order is generated using a planning run where the bills of material are exploded and dependant requirements (i.e. multi-level BOM) for the assemblies and components are generated. As soon as the production starts, a production order is created from the planned order. The system returns the confirmed quantity and delivery date from the production order to the sales order.

10. MTO with assembly processing – in this case the individual components for the final product have already been produced. You only need to assemble the components according to the customer’s wishes. In this process, you only need a one level BOM and generation of dependent requirements is not necessary. In this case no planning run is generated and a production order is created directly from the sales order. The system returns the confirmed quantity and the delivery date from the production order to the schedule lines in the sales order. Any changes made to the confirmed schedule lines or the delivery date is immediately visible in the sales order and/or in the production order.

11. After production department has finished making the material, goods receipt is posted in the sales order stock i.e. special stock which can only be used for a specific sales order. After posting goods issue for outbound delivery, the sales order stock is reduced accordingly.

MTO order the Costs are calculated in other way, and stored in EK02 condition type.

But not a VPRS Condition Type – Please Check.

A2. 1. Make to order production means that the materials (finished products) are not stored in the warehouse but produced especially for a particular sales order or a sales order item. An individual customer requirement is generated from the sales order item and transferred to materials planning (MM/PP). You can use materials planning to plan requirements. Once this has been done, production is carried out. After the product has been manufactured, you post it by goods receipt to sales orders stock specifically for this sales order item. As soon as the delivery is due, you can enter the delivery in SD and post goods issue which reduces the sales order stock and then a billing document can be entered.

2. The item category in the sales document is found using the sale document type and the item category group from the material master found on the tab page sales org 2 i.e.

a. sales document type – OR

b. item category group – 0001

c. item category - TAK

3. MTO without assembly processing – the requirement quantity (planned independent requirements), delivery date and configuration specifications are transferred from the sales order to materials planning as an individual customer requirement. A planned order is generated using a planning run where the bills of material are exploded and dependant requirements (i.e. multi-level BOM) for the assemblies and components are generated. As soon as the production starts, a production order is created from the planned order. The system returns the confirmed quantity and delivery date from the production order to the sales order.

4. MTO with assembly processing – in this case the individual components for the final product have already been produced. You only need to assemble the components according to the customer’s wishes. In this process, you only need a one level BOM and generation of dependent requirements is not necessary. In this case no planning run is generated and a production order is created directly from the sales order. The system returns the confirmed quantity and the delivery date from the production order to the schedule lines in the sales order. Any changes made to the confirmed schedule lines or the delivery date is immediately visible in the sales order and/or in the production order.

5. After production department has finished making the material, goods receipt is posted in the sales order stock i.e. special stock which can only be used for a specific sales order. After posting goods issue for outbound delivery, the sales order stock is reduced accordingly.

6. 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.

7. 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.

8. 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)

9. 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.

10. 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)

11. 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 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

Please Find Notes on MTS ( Make To Stock )

Make to stock:

without having any purchase orders from the customer, products/Materials will be manufactured and keep as stock in plants, warehouses, depots etc.,

when ever receives orders from the customers and will delivery the goods to customers.

Ex:- Hindustan Lever Limited - produces soaps, detergents,cosmatics etc.,

when ever the order comes from the customers they will delivery goods from the available stock.

Hope this Helps you in understanding the Process your asked,

Please Reward If Really Helpful,

Thanks and Regards,

Sateesh.Kandula

[Former Member]

STO

Whenever you need to transfer the materials from one plant to another plant belonging to one company or belonging to two company code stock transfer order is raised by the delivering company.

STO:

Transfer of goods from one location to another location,it may be between plants within the same company code or in different company code's plants.

within the company code,bet plants, receiving plant will raise the STO in Supplying/issuing plant-ME21n,

Supplying plant will deliver the goods to receiving plants , then we need to pick n post the Goods Issue-VL02n, nw when we can observe that the STO qtty will be added into receiving plant and reduced in Delievering plant.

Configure Intercompany Stock Transport Order

Material should exist in both the plants (Delivering & Ordering),

Internal customer should be assaigned to the ordering plant ( MM -> Purchasing -> Purchase Order -> Setup stock transport order -> assign the internal customer to the ordering plant and assign the Sales area of the internal customer.

Assign its Sales area to the delivering plant

Assign the document type and Delivery type NB and NLCC

Assign the Supplying plant --> Receiving Plant --> NB

Take the delivering plant and assign the sales area.

Vendor master has to be created and assaign the supply source ( Delivering Plant).

Create a puchase order ME21N ---> Save

Delivery VL10 G ---> Calculation rule (appropriate) --> Assaign the purchase order number here nt. and execute.

Select the Delivery creation line and do the back ground process.

Start the log display and see the delivery document number by the documents button

Goto VL02N --> do picking and PGI --> Then do the MIGO with respect to the delivery docume

Billing (Intercompany pricing conditions should be set).

MTO

Steps for SD Variant Configuration

Create a Material - KMAT type with Item category (002)

Create Characteristics in CT04 - Z bike, where in values mention the Color of the bile like Red, Blue etc

Create another characteristics in CT04 - ZPrice, where directly go the additional data tab and maintain the table SDCOM and field VKOND (ABAP Dictionary it will ask for)

Assign these two characteristics to a Class in CL01 - ZBikeclass ( Type 300) in characteristics tab page.

Then go to CU41 Configuration profile select the material and enter the description click on the class assignment ie assign Zbikclass.

Now go back to CT04 - enter Zbike -go to values- select Red- go to extras - Other Dependencies - Select Procedure enter in front 10 write - $self.ZPrice='Red' and save

Now go back go to extras - Other Dependencies - assignments and assign relationship ( by default it will come just save)

Now select Blue- go to extras - Other Dependencies - Editor - Select Procedure enter in front of 10 write - $self.ZPrice='Blue' and save

Now go back go to extras - Other Dependencies - assignments and assign relationship ( by default it will come just save)

Now go to VK11 - Enter VA00 (Condition)(For Std RVA001 Pricing Procedure) - enter variant Red and Blue give the rates accordingly and create the sales order.