Acc assignment category in Make to Order

[kapil_mehta]

Dear Experts

I have query about recommended configuration setting for Account assignment category, Requirement class in Make to order scenario.

My client does both MTS & MTO production. There are some FG code relevant for MTO and they have Strategy group 20 (MTO) in MRP3 tab in material master.

Using std setting, strategy 20 -> requirement type KE -> requirement class 040 MkToOrdNoValW/o cons.

In requirement class 040, account assignment category E is mapped. It has consumption posting "E". SAP recommends Consumption posting E where cost/revenue are to be collected on Sales order item in complex MTO scenario. But we do NOT have a complex MTO scenario, rather it is sales order based mass production.

Should I remove Consumption posting indicator "E" from account assignment category "E" or use category "M" instead of E ?

In req. class 040, If I specify category M, System also expects valuation of special stock. Should I use valuation M or A ? What is impact of using M vs A ??

In req. class 040, Should I keep tick "without val strategy". I understand by using this system will consider standard price for non-customer item in MTO scenario.

Should I continue to use settlement profile SD1 ? What benefit will it have ??

Should I still use RA Key 0004, considering collecting cost/revenue on sales order item may not be objective.

What is recommended best practice for above aspects in MTO scenario ?

Regards

Kapil

[former_member259539 · Accepted solution]

Should I remove Consumption posting indicator "E" from account assignment category "E" or use category "M" instead of E ?

you can use account assignment category M instead of E. if you are using M category then there is no need to settle slaes order in COPA if your FG is only used in MTO then go for M

In req. class 040, If I specify category M, System also expects valuation of special stock. Should I use valuation M or A ? What is impact of using M vs A ??

if you are using M category then system will valuate the stock on the basis of sales order line item cost estimate or parliamentary cost estimate in case of A category, sales order stock will be valuated on the basis standard price of the material.

its all depends on your business need which one you suits you. if you have more variations in MTO then go for M.

In req. class 040, Should I keep tick "without val strategy". I understand by using this system will consider standard price for non-customer item in MTO scenario.

you are right but if your production is same both for non relocatable stock as well as sales order base production then you can use it

as far as i know if your valuation strategy is M from MTO then there is no need to mark it

Should I continue to use settlement profile SD1 ? What benefit will it have ??

well if you are using M category then there is no need to use it. because standard SD1 profile settle only cost on GL or profitability segments..

Should I still use RA Key 0004, considering collecting cost/revenue on sales order item may not be objective.

you can go for 000002 (WIP Calculation at Actual Costs)

What is recommended best practice for above aspects in MTO scenario ?

both solutions are available. in case of M then don't mark tick without valuation strategy and use RA Key 000002

with M it is simple and it minimizes the month end processes as well.in case of M you have to calculate variance WIP and order settlement on production order rather then sales order.

[Former Member]

Hi Kapil,

Please check the below link.

https://wiki.scn.sap.com/wiki/display/ERPFI/MTO+Customizing+at+a+Glance+including+technical+view+on+...

Regards

Srinu

[kapil_mehta]

Thanks Srinu

[former_member259539]

thanks srinu its indeed a nice document

[kapil_mehta]

Dear Muhammad

Thanks for your answers. I may still have queries, so keeping thread open.

Regards

Kapil