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MTO

Dear Gurus,

Can anyone help how we configure Make to order step by step

Thanks

Regards

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1 Answer

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    Former Member
    Jan 11, 2008 at 01:49 PM

    Go thru this documentation

    MAKE TO ORDER AND MAKE TO STOCK notes

    Make to order Scenario

    1. 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:

    Enter Sales order number: 8212, Item No. 10

    Order type: PP, Enter

    Click on FLAG,

    Select Generate Operation and enter NO,

    save the Document.

    Production Order Created: 60002725

    Confirm the Production Order with CO15.

    Enter Production Order No. 600075 and save the Document.

    Now the confirmation Order will be saved.

    Create Goods Receipts with MB31.

    Movement type: 101

    Order: 6002725

    Plant: RAMA

    Storage Location: RAMA

    Enter and Save, you will get Document Posted: 50000068931posted.

    Check the Stock Position with MMBE

    Material: 769

    Plant: RAMA

    Storage Location: RAMA

    Execute (F8), here we can see the stock at Sales Order Stock.

    Create Delivery with VL01N, Billing with VF01 and Post to Accounts.

    Make-To-Stock Production:

    Purpose

    we describe the planning of a product for make-to-stock production. After requirements planning, you analyze the stock situation and convert a planned order into a production order. You also enter a sales order that is not relevant to the planning. The production order is then released and saved. After the material withdrawals and confirmation of the operations, you analyze the production variances. The sales order is delivered and settled.

    Process Flow

    1. Planning a Product

    T.code: MD61

    Planned Independent RequirementsDemand Management Production Planning  Production Logistics Create

    2. Creating a Sales Order

    T.code: VA01

    Create Order  Sales  Sales and Distribution Logistics

    3. Executing Multi-Level Requirements Planning

    T.code: MD02

    Single Item - Multi-LevelFrom the MRP node, choose Planning

    4. Converting the Planned Order into a Production Order

    Tcode: MD04

    From the MRP node, choose

    Stock/Reqmts listEvaluations

    5. Withdrawing the Material for the Production Order

    T.code: MB1A

    Issue Goods Movement  Inventory Management Materials ManagementLogistics Goods

    6. Confirming the Production Order

    T.code: CO11N

    For Operation Enter  Confirmation  Production Control Production Logistics Time Ticket

    7. Creating a Delivery

    T.code: VL01N

    Shipping and Transportation Sales and Distribution Logistics Single Document Reference to Sales Order Create  Outbound Delivery With

    8. Creating a Billing Document

    T.code: VF01

    Billing document Billing  Sales  Logistics Create

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