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MTO

Hi All,

New to MTO business process and have some questions..

In MTO Scenario

1) When do we use sales order Cost Estimate and what is the use of cost estimate in sales order?

2) When do we use Sales order Overhead calculation and why we use?

3) When do we use strategy group (20) on MRP3 tab in MM03 and why and what purpose?

4) When do we use requirements class and requirement type and what is the use?

5) What is the use of Item category in SD in MTO?

Any help is appreciated and will assign points.

Thanks,

Rau

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 16, 2008 at 06:42 AM

    In MTO Scenario

    1) When do we use sales order Cost Estimate and what is the use of cost estimate in sales order?

    2) When do we use Sales order Overhead calculation and why we use?

    3) When do we use strategy group (20) on MRP3 tab in MM03 and why and what purpose?

    4) When do we use requirements class and requirement type and what is the use?

    5) What is the use of Item category in SD in MTO?

    MTO:

    Sales order> mrp> production order> delivery> billing

    sales order is for finished good purpose to make this finished good some raw materials and services are required after all the things are maintained for particular material after prodution was done at the time co consultant are run this cost estimate

    cK51N

    before costing run only we have faind the overhead groups wher we have to assign that group to finished group

    at the time of make to order we have to maintain this 20 in material master

    Stratage group is linked with this reqirment class and requirment type wher this is linked with co account assignment categrey and settil ment profile to settile the order

    regarding item gategery this is linked with material master and material document wher this was defined and assigiend in VOV7and VOV4

    FOR THER PLZ GO THROUGH WITH IMG NODE PRODUCT COSTING

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 16, 2008 at 06:44 AM

    Hi,

    Normally cost estimates can be done at the SALES ORDER level and PRODUCTION ORDER level....it depense the way they configure.....

    If Product costing if the cost estimate is on sales order level at the time of Billing then the system at the time billing release the system check the cost estimate from sales order...

    Strategy group defines that the material is MAKE TO STOCK (MTS) or MAKE TO ORDER(MTO)

    Item category is in sales order is nothing but a material will be categoried based on the process.....eg:MTO item,MTS item,STAndard...etc.

    if useful assignpoints...

    regards,

    santoshkumar

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