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Costs are tracked at material/plant level

Posted on Dec 04, 2007 at 02:24 PM 24 Views

Hello

In MTS ( SG10) - <b>costs are tracked at material level</b>

Does it apply the same for other MTS strategies ( Like SG 11, SG 30, SG 40, SG 70) or it varies

In MTO (SG 20), - <b>costs are tracked at sales order level</b>

Does it apply the same for other MTO strategies ( Like SG 50, SG 60- Planning with planning material)

In REM manufacturing - In general what are the <b>strategy groups</b> that are used

In SG 81 ( Assembly to order from planned orders) - In this strategy costs are tracked at sales order level

Summary of Questions:

1. At what level are costs are tracked ( material/sales level) for various MTS strategies including SG 11, 30, 40, & 70

2. At what level are costs are tracked ( material/sales level) for various MTO strategies including SG 50, 60, 82

3. In general, what are the strategies that are used in REM mfg

Thank you

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2 Answers

  • author's profile photo Prasobh Karunakaran
    Prasobh Karunakaran
    Posted on Dec 04, 2007 at 04:19 PM
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    Eshwer,

    You got it almost right.

    In MTS scenario it is production order based costing that's for the material/plant/order. Every production order has a planned cost and actual cost incurred and the difference in this cost is called as variance which is settled to the PRD(Price difference account) for materials.

    In MTO scenario, the costing is based on order still, but it gets settled to Sales order.

    Hope this helps...

    Regards,

    Prasobh

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    • Former Member
      Dec 04, 2007 at 09:15 PM

      Prasobh

      Thank you

      I am presuming the SG's that are used for REM in general are <b>SG 10 ( MTS REM based mfg)</b>

      and <b>SG 81 ( MTO REM based mfg)</b> where many planned orders are created for a given sales order ( Dynamic relationship which is unlike in SG 82 - i.e. static relationship between sales order & production order)

      REQT TYPE : KMSE

      REQT CLASS: 200

      Availability check is perfomed for components to determine available stock which inturn helps in determining approximate <b>delivery date for sales order</b>

      For SG 82, we donot need to have a MRP run (MD02 - Plant/material level ) is the <b>same applies for SG 81</b>

      Summary of Q's

      1. Apart from SG 10 ( MTS REM Based Mfg) & SG 81 ( MTO REM Based Mfg) what are the other common SG's that are used in REM based company

      2. Do we need to run MRP for SG 81

      Thank you

  • author's profile photo Former Member
    Former Member
    Posted on Dec 04, 2007 at 04:24 PM
    0

    That depends on the account assigment...

    If it is MTS, since account assigment is not there, cost is at material/plant level

    In MTO, there will be one account assignment for which the production order is assigned.

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    • Former Member
      Dec 04, 2007 at 08:58 PM

      Rajesha,

      Thank you

      I am not clear about <b>account assignment</b>, Is it about the accounting/material document that is generated because of goods movement like STO, Transfer postings between 1 plant & the other

      I tried to look into VA01 ( under menu bar - Goto - Account Assignment ) It lead to WBS element & Business area

      Can you be more elaborate on account assignment

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