Goods Issue to Production Order in MTO Scenario

[Former Member]

Dear Gurus,

Need your inputs

MTO scenario where FG1 is planned using Strategy 20

Semi Finished SF1, SF2, SF3 are planned as MTS with planning strategy 10

Raw Materials RM1,2,3,4,5 have MTS with strategy 10.

When a Sales Order is created for FG1 & MRP is run planned orders are created for all components.

For Raw Materials planned order is converted to Purchase Order & GR is done.

Stock is placed in Customer Stock 0000000257/000020 showing Dep Req for SF.

Similarly Planned Order Created for all SF is converted to Production Order (In House Production) &

Planned Order Created for FG is converted to Production Order.

Issue

While doing Goods Issue to Production Order both for Semi Finished & Finished, Should goods be issued from the reserved stock for Sales Order? If yes what is/are the correct step/s?

Currently reserved Sales Order stock is moved to Unrestricted Stock by Transfer Posting with Movement Type 411 E, is this correct way or something is missing?

Regards,

[former_member184655 · Accepted solution]

Dear Horse power,

If you want to restrict the creation of Planned orders/Pur.Req in the case of the Make to Order

scenario,then you have to set the value as 2 - for indi/collective requirement indicator in the MRP4

view of the material master for the applicable components.

In this case the components gets issued using 261 movement.If this is not requirement and then in

the production order in the component overview remove the special stock indicator for such

components,so that the system consumes the stock in the un-restricted stock and it does not look

for a customer specific stock.

Regards

Mangalraj.S

[Former Member · Accepted solution]

Hi MangalRaj,

Thanks for the inputs.

Situation is that i had maintained Ind/Coll ind as 1, when GR was done for Raw Mat then stock will sit in Cust stock for that Sales Order.

When i create a production order for Semi Finished or Finished product & try to issue components, consumption of components is done from unrestricted stock not from the  reserved Sales Order stock.

(Which should have been the ideal case)

So i have to first move reserved Sales Order stock to Unrestricted by Transfer Posting with Mvmnt Type 411E & then issue to Production Order. Validated by Jeevan in his reply

Production Order for Semi fin or Finished Product doesn't identify the Reserved Sales Order Stock (Components).

Is there any setting or step i am missing to let Production Order identify these reserved components?

Regards,

HorsePower

[sundaresan_velayudam · Accepted solution]

When i create a production order for Semi Finished or Finished product & try to issue components, consumption of components is done from unrestricted stock not from the  reserved Sales Order stock.
(Which should have been the ideal case)

Then set the collectiove indicator 2 in MRP 4 view for all the components assigned to the FG, so that when ever the GR happens system will post the stock in unrestricted- no need to do transfer posting

Production Order for Semi fin or Finished Product doesn't identify the Reserved Sales Order Stock (Components). 
Is there any setting or step i am missing to let Production Order identify these reserved components?

Go the production order component overview

Check the special stock  field  of the components

If  the special stock indicator is blank, you can post the Goods issue from the unrestricted stock

if the special stock indicator is 1, you can post the Goods issue from the sale order stock only.

If  the special indiactor is 1, you want to do the GI from unrestrcited, then change the indicator collectively for the all the components and then read the master data again ( considering confimation and goodsmovement is not carried out) now thw apecial stock indiactor will be balnk for the components and do the GI from unrestricted

If the confimation or goods movement is happened, then do the transfer posting from unrestricted to sale order stock and do the GI

[sjeevan · Accepted solution]

Why you want the system to reserve SFs and RMs as sales order stock?

Why are you currently using MTS for SFs and RMs?

[Former Member · Accepted solution]

Hi Sundaresan,

Thanks for the spot on reply.

Thank you all for sharing your thoughts.

Regards

[Former Member · Accepted solution]

Dear Jeevan,

Reservation of SF & RM against Sales Order needs to be done to keep track of goods assigned to those Sales Order. This is done for few finished goods.

For SF & RM MTS is the best possible way to plan.

Regards,

Horse Power

[rupesh_brahmankar3]

Hi,

For your semi-finish and Raw material use Ind /collect indicator as 02 in MRP 4 view.

Then these material will be in unrestricted stock which can be used directly for further consumption.

Please try and come back.

Regards,

R.Brahmankar

[Former Member]

Thanks Jeevan & Brahmankar,

By maintaining Ind/Collect indicator as 2 no Sales Order stock is maintained for dependent Semi Fin & Raw Materials.

While as if Sales Order stock is maintained @ each dependant level then stock is moved through Transfer Posting to Unrestricted Stock. As said by Jeevan its really menial work .

Thanks once again, thought i was missing some steps.

Regards

[sjeevan]

While doing Goods Issue to Production Order both for Semi Finished & Finished, Should goods be issued from the reserved stock for Sales Order?

You're planning SFs and RMs using MTS, when you say you want their stock to be sales order stock for that production order, meaning you're indirectly saying that it needs to be MTO. So, that's is a conflict in your requirement.

Now the question is should the stock of dependent requirements (SFs and RMs) be sales order stock? That depends on your client business needs and process and their prioritization. Imagine a case you already have sales order (SO1) and dependent requirements have sales order stock, now another emergency sales order (SO2) comes which needs to be delivered before because of some customer loyalty program or something, now system will create requirements for sales order stock it will not look for the stock of dependent reqs of SO1. So your whole MTS process for SFs and RMs is defeated.

If you maintaine individual/coll. req. indicator 2,  for your raw and SF materials (MRP 4 tab), system will just look for unrestricted stock available.

But if you want do MTS for dependent requriements (SFs and RMs) and you want make it sales order stock individually for each sales order then what you're doing 411E is fine. Just know that it's a lot of menial work.