Make to order scenario(Distribution rule)

[Former Member]

hello SAP guys,

In make to order scenario,we settle the cost of production order to the sales order,right?If we settle against the sales order than from where it takes the default rule (Distribution rule).As in Order type we give Distribution rule as Material 100% settlement.

And one more thing that in requirement class which gets used in Requirement type KE,we give the settlement profile,but in order type also there is settlement profile,so does settlement profile defined in requirement class override the settlement profile defined in order type for make to order scenario?

[former_member698542 · Accepted solution]

Hi Jithendra,

We define the settlement profile in Strategry 20, Hence it overrides the Ordere type settings.

Thanks and regards

Murugesan

[Former Member]

Thanks for sharing your knowledge.But again i want to know that if it takes settlement profile from strategy then from where it takes the distribution rule(settlement rule) that cost of the production order to be settled to sales order instead of to material.As i didn't find the settlement rule inside the settlement profile.Though there you can give the valid receivers.

Thanking you.

Edited by: jitendra chauhan on Apr 1, 2008 7:46 AM

Edited by: jitendra chauhan on Apr 1, 2008 7:47 AM

[Former Member]

As per Strategy 20 working as follows

Strategy 20

1.The sales order quantities are planned for production using the sales order number. The quantities produced for the individual sales orders cannot be changed. Each quantity is maintained specifically for the individual sales order. A separate segment is created in the MRP list for make-to order production.

2.Starting from the sales order, you can apply this type of planning to as many levels of the BOM as you want. Assemblies and components are also produced or procured specifically for the pegged order, and stock is also managed separately for this sales order.

3.The production and procurement costs are maintained for each sales order in either a settlement order or in a project at sales order item level. A detailed analysis of the planned and actual costs is ensured.

4.You can also use this production technique to create assembly orders. The assembly order triggers the creation of either a production order or a planned order and provides you with a precise delivery schedule. The delivery schedule is based on availability and the production requirements of the relevant assemblies and components.

Reward points if it found helful

[Former Member]

Hi,

Settlement rule includes one or more distribution rules.

This distribution rule assigned in settlement profile.

Settlement profile consists of

1. Settlement receivers

2. Max no. of distribution rules

3. default settlement structure

Distribution rule consists of cost receiver, a settlement share and a settlement type.

These items you can find in settlement profile itself.

For Make to order scenario settlement profile system taken from requirement type KE, not from order type.Both settlement profile are same.

So in this settlement profile itself settlement rule is assigned for MTO.

Regards,

Dharma

[Former Member]

Hi,

Settlement profile is available in Strategy and in Order type.

Order type settlement profile is used if you do inhouse production corresponding to that order type settlement will occur.

If you do external procurement ie, a material is procured from outside and we are selling that material. So for this scenario, no production order. So Order type settlement profile will not use. This time system considering the profile from strategy ex: SD1 - Sales order profile.

Hope you are clear.

Regards,

Dharma

[Former Member]

Hi,

Settlement profile defined in order type only. Distribution rule also system is taking from Order type only.

If you want to change the distribution rule, in the production order manually we can change.

Ex: For co-product in the production order manually we are changing the Distribution rule.

In requirement type or requirement class, there is no settlement profile. Requirement type is using for only strategy.

Regards,

Dharma