*MD74 on MTO items???*

[Former Member]

Hi All,

After reading about MD74 on this site. I am planning to use this t-code. Most blogs reff to STG 40 while creating PIRu2019s .

What if I have a certain range of MTO product with PIRu2019s? Will MD74 work on them?

Only way I can link Sales order and Production order is by using STG 20. hence it is imp for me to use this setting for an MTO product. But in my scenario we do forecast for such products (MTO) to create a material demand.

I am not sure how MD74 will work using this stg group 20?

Any help will be appreciated

Thanks

Deepak

[former_member196530 · Accepted solution]

Dear

If your scenario is MTO & you also need a forecast (ie PIR) to be maintained in system for your finished goods, then SAP has provided standard planning strategy =50.

As one of the experts already mentioned it is not possible to maintain PIR in MD61 with PS =20. It is possible only with 50.

It is a very useful PS & I have used it for MTO scenarios that require Forecasting ( Demand planning )

Use this planning strategy when the main value-added process is final assembly. It is the most widely-used strategies in a make-to-order environment. Like all make-to-order strategies, you should use strategy 50 if production is unique for each and every customer;

Prerequisites : You must maintain the following master data for the finished product:

Strategy group 50 on the MRP screen

Consumption parameters (Consumption mode, Bwd consumption, Fwd consumption) so that the independent requirements can be found.

Item category group (for example, NORM) on the Sales Organization View of finished product

A BOM is required for the finished product.

You may want to consider setting the Individual/coll. indicator to 2 for a make-to-stock procurement of components in a make-to-order environment.

"End Result"

1. Maintain PIr in MD61 for FG

2. Run MRP

3. Planned order (order type VP) will be created for FG but it cannot be converted to production order till Actual Sale order is created in system

4. However Procurement of the components & production of Sub assemblies can be carried out up to one level before the finished product level.

5. The assemblies and components required for producing the finished product are placed in stock to await the incoming sales order.

6. Once the actual sales order is created it then consumes the (PIR) planned independent requirements, and this in turn reduces the unconvertible planned order quantity.

Refer ;

Regards

JH