MTO & MTS

[Former Member]

Hello Gurus,

What are the MTO & MTS. Explain me clearly with example.

Bye

[Former Member · Accepted solution]

Hi,

MTO - Acronym for Make -To- Order. Material which are made against a specific sales order / project / network order. The requirement created for MTO materials will be individulal. Stock of the materil will be maintained in separate stock segment of the order / project. Stocks can be valuated on non-valuated. In valuated stock, every material movement creates a corresponding accounting document, whereas in non-valuated stock materal movements do not create aaccounting document. production orders / puchase orders for MTO materilas will be account assigned to sales orders / networks / WBS element etc.

MTS - Acronym for Make-To-Stock. Stock is maintained at plant level. There is no separate stock segment. Production order / Purchase order etc. are not account assigned. Every material movement creates an accounting document.Requirements / inventory are mainatained and tracked at plant level.

Hope it provides basic information sought by you.

Regards

Muraleedharan.R

[Former Member · Accepted solution]

Hi MURALEEDHARAN,

I'm new to Engineer To Order (ETO) and Make To Order (MTO) Product Costing and my client like to implement ETO and MTO costing with Project Systems(PS) integration.

If you worked on these proccess? please can you guide me how to design the process.my client is discrete manufacturing industry.

Thanks,

Rau

[Former Member]

Hello Murli,

These are the two strategies which are used in the production of the material.

MTO means Make to Order strategy.

In the MTO you decide your production as per the order received

And

MTS means Make to Stock Strategy

In MTS production is not depend on any order you produce the material for stock

If above information is useful plz assign the points

Regards

Ravi