SD2016: SD Make-to Stock and Make-to Order v 1.
India SAP CoE, Slide 1
Make to Stock and Make to Order.
1 PrepareMe
2 TellMe
3 ShowMe
4 LetMe
5 HelpMe
India SAP CoE, Slide 2
Make to Stock and Make to Order.
1 PrepareMe
2 TellMe
3 ShowMe
4 LetMe
5 HelpMe
India SAP CoE, Slide 3
Purpose
Business makes goods ready for sales to any of their customers when they
demand. And also at times goods are made for a specific customer which shall
only be sold to him (most cases)
To Stock :
This scenario is used when we have to produce stock independently of orders
because you want to provide your customers immediately with goods from that
stock later on. Here, goods may be produced without having sales orders, if
you expect that there might be customer demand in the future. This means that
make-to-stock strategies can support a very close customer-vendor
relationship because your objective here is to provide your customers with
goods from your stock as quickly as possible.
Against an order:
The scenario considers production of a material for a specific individual sales
order. This means that we do not want to produce finished products until a
sales order is received. So, make-to-order strategies always support a very
close customer-vendor relationship, because your sales orders are closely
linked to production
India SAP CoE, Slide 4
Use
When stock are made ready to Make to Stock is used:
•To decide whether sales orders exceeding your plan are to affect
production or not.
•Receive sales orders relatively early on to have a production plan.
Make-to-order is used in the following environments:
•Production using specification/requirement of customer.
•Assemble-to-order
India SAP CoE, Slide 5
Challenges
Make-to-stock strategy :
The materials are not segregated i.e. they are not made against
specific sales orders.
Costs need to be tracked for the material , and not at sales order level.
Create a production plan in advance to plan stock.
Make-to-order strategy :
The materials are segregated. This means, they are uniquely assigned
to specific sales orders.
Costs must be tracked at sales order level and not on material level.
India SAP CoE, Slide 6
Make to Stock and Make to Order.
1 PrepareMe
2 TellMe
3 ShowMe
4 LetMe
5 HelpMe
India SAP CoE, Slide 7
Make to Stock- Process
This process describes the planning of a product for
make-to-stock production. After requirements planning,
we analyze the stock situation and convert a planned
order into a production order.
Also, we can enter a sales order that is not relevant to
the planning. The production order is then released and
saved. After the material has been withdrawn, the
operations are confirmed. The sales order is delivered
and settled .
India SAP CoE, Slide 8
Make to Stock- Flow
PROCESS FLOW
Convert Planned
Product Planning Requirement Planning order to production
order
Material for
Production order
Confirm
Production Order
Create
Billing Delivery
Sales Order
India SAP CoE, Slide 9
Make to Order- Process
In this process, we create a sales order in SD and
transfer the requirements to PP. The requirements
are checked using MRP, before a production order is
generated. This production order is created in PP.
Shipping and billing both occur in SD. Finally, you
check the costs and revenues in CO.
India SAP CoE, Slide 10
Make to Order (using sales order)-
Flow
PROCESS FLOW
Sales Order Planning
Delivery Production Order
Goods Issue Goods Receipt
Reduces Stock Stock is not
received in
unrestricted
Billing stock
Stock against
Sales Order
India SAP CoE, Slide 11
Make to Stock and Make to Order.
1 PrepareMe
2 TellMe
3 ShowMe
4 LetMe
5 HelpMe
India SAP CoE, Slide 12
Material Master-Make to Stock
In screen Sales Org 2-Item Category Group is indicated
India SAP CoE, Slide 13
Material Master-Make to Stock
In screen MRP 1-MRP Type and MRP Controller must be mentioned
India SAP CoE, Slide 14
Material Master-Make to Stock
In screen MRP 4-Strategy group must be mentioned
India SAP CoE, Slide 15
Configurations---MTO/MTS
IMG-> Sales and Distribution-> Basic Functions-> Transfer of Requirements
->Define Requirement Types
India SAP CoE, Slide 16
Configurations---MTO/MTS
IMG-> Sales and Distribution-> Basic Functions-> Transfer of Requirements
->Determination of Requirement Types Using Transaction
India SAP CoE, Slide 17
Configurations---MTO/MTS
IMG -> Production -> Material Requirement Planning ->Master Data
->Independent Requirements Parameters ->Planning Strategy -> Define
Strategy
India SAP CoE, Slide 18
Configurations---MTO/MTS
IMG -> Production -> Material Requirement Planning ->Master Data
->Independent Requirements Parameters ->Planning Strategy -> Define
Strategy Group
India SAP CoE, Slide 19
Configurations---MTO/MTS
IMG -> Production -> Material Requirement Planning ->Master Data
->Independent Requirements Parameters ->Planning Strategy -> Assign MRP
Group to Strategy Group
India SAP CoE, Slide 20
Make to Stock- Planning a product
SAP Easy Access Logistics Production Production Planning Demand
Management Planned Independent Requirements Create (MD61)
India SAP CoE, Slide 21
Make to Stock-Executing Multi-Level
Requirements Planning
SAP Easy Access Logistics Production MRP Planning Single-Item,
Multi-Level (MD02)
India SAP CoE, Slide 22
Make to Stock- Convert Planned Order
to Production Order
SAP Easy Access Logistics Production MRP Evaluations Stock
/Requirement list (MD04)
India SAP CoE, Slide 23
Make to Stock- Convert Planned Order to
Production Order
Displaying the details of planned order in MD04; Choose -> Prod. Order ( Convert
planned order into production order).
India SAP CoE, Slide 24
Make to Stock- Convert Planned Order to
Production Order
To release the order, choose the flag . To schedule the order, choose the
next icon . Save-Prod. Order is created
India SAP CoE, Slide 25
Make to Stock- Convert Planned Order to
Production Order
Production created
India SAP CoE, Slide 26
Make to Stock- Withdrawing the Material for
the Production Order
SAP Easy Access Logistics Materials Management Inventory Management
Goods Movement Goods Issue (MB1A).Enter the Prod. Order created
India SAP CoE, Slide 27
Make to Stock- Withdrawing the Material for
the Production Order
Choose “Adopt + Details”.Save.
India SAP CoE, Slide 28
Make to Stock- Confirming Production
Order
SAP Easy Access Logistics Production Production Control Confirmation
EnterFor Operation Time Ticket (CO11N)
India SAP CoE, Slide 29
Make to Stock- Goods Receipt against
Production Order
Tcode mb31-movt. Type 101
India SAP CoE, Slide 30
Make to Stock- Create Sales Order (not
relevant for planning)
SAP Easy Access Logistics Sales and Distribution Sales Order Create
(VA01)
India SAP CoE, Slide 31
Make to Stock- Create Delivery
SAP Easy Access Logistics Sales and Distribution Shipping and
Transportation Outbound Delivery Create (VL01N)
India SAP CoE, Slide 32
Make to Stock- Create Billing
SAP Easy Access Logistics Sales and Distribution Billing Billing
Document Create (VF01)
India SAP CoE, Slide 33
Material Master-Make to Order
In screen Sales Org 2-Item Category Group is indicated
Incase of MTO with variant configuration item category TAC has item category
group 0002
India SAP CoE, Slide 34
Material Master-Make to Order
In screen MRP 1-MRP Type and MRP Controller must be mentioned
India SAP CoE, Slide 35
Material Master-Make to Order
In screen MRP 4-Strategy group must be mentioned
India SAP CoE, Slide 36
Make to Order- Assembly order
SAP Easy Access Logistics Sales and Distribution Sales Order Create
(VA01)
India SAP CoE, Slide 37
Make to Order- Checking requirement
MRP
Logistics Production MRP Evaluations Stock/Requirements List
(MD04)
India SAP CoE, Slide 38
Make to Order-Requirements Planning
SAP Easy Access Logistics Production MRP Planning Single-Item,
Multi-Level (MD02)
India SAP CoE, Slide 39
Make to Order- Convert Planned Order
to Production Order
SAP Easy Access Logistics Production MRP Evaluations Stock
/Requirement list (MD04)
India SAP CoE, Slide 40
Make to Order- Convert Planned Order to
Production Order
Displaying the details of planned order in MD04; Choose -> Prod. Order ( Convert
planned order into production order).
India SAP CoE, Slide 41
Make to Order- Convert Planned Order to
Production Order
To release the order, choose the flag . To schedule the order, choose the next
icon . Save-Prod. Order is created
India SAP CoE, Slide 42
Make to Order- Withdrawing the Material for
the Production Order
SAP Easy Access Logistics Materials Management Inventory Management
Goods Movement Goods Issue (MB1A).Enter the Prod. Order created
India SAP CoE, Slide 43
Make to Order- Withdrawing the Material for
the Production Order
Choose “Adopt + Details”.Save.
India SAP CoE, Slide 44
Make to Order- Confirming
Production Order
SAP Easy Access Logistics Production Production Control Confirmation
EnterFor Operation Time Ticket (CO11N)
India SAP CoE, Slide 45
Make to Order- Goods Receipt against
Sales Order
Tcode mb31-movt. Type 101
India SAP CoE, Slide 46
Make to Order- Stock overview
Tcode mmbe- Indicates matl. against Sales Order Stock.
India SAP CoE, Slide 47
Make to Order- Create Delivery
SAP Easy Access Logistics Sales and Distribution Shipping and
Transportation Outbound Delivery Create (VL01N)
India SAP CoE, Slide 48
Make to Order- Create Billing
SAP Easy Access Logistics Sales and Distribution Billing Billing
Document Create (VF01)
India SAP CoE, Slide 49
Make to Stock and Make to Order.
1 PrepareMe
2 TellMe
3 ShowMe
4 LetMe
5 HelpMe
India SAP CoE, Slide 50
LetMe
Transactions
MD61 Create Planned Independent
Requirements
MD04 Create Stock /Requirement list
VA01 Create Sales Order
CO11N Confirmation of production order
VLO1N Create Delivery
VF01 Create Billing
India SAP CoE, Slide 51
Exercise-Make to Stock (in IDES ECC -6.0)
Planning a product ( Tcode MD61): Material P-109; Plant 1000; version 00.
Enter. Use Planned qty 100 ( for each month)
Create sales order( Tcode VA01):Order type: OR. Sales Area: 1000/10/00
Sold-Party 1000; Material P-109;Qty 2 nos.
Convert Planned order to Production Order: (Tcode MD04):Matl P-109;
Plant 1000. Enter. Choose display; Choose Prod Order (Convert
planned order into production order .Release the order. Save.
Confirm the Production order: (Tcode CO11N):Order no: Prod order no.
Oper/Activity:0060.Confirmation type: Final confirmation. Enter. Save.
Create delivery: Use Shipping point 1000.
Create Billing.
India SAP CoE, Slide 52
Exercise-Make to Order (in IDES ECC -6.0)
Create sales order( T. Code VA01):Order type: OR. Sales Area: 1000/10/00
Sold-Party 1000; Material P-401;Qty 1 nos.
Checking Requirement MRP (T. Code MD04): Material: P-401;Plant 1000.
S Loc .0002.Note the prod. Order.
Confirm the Production order: (T. Code CO11N):Order no: Prod order no.
Oper/Activity:0060.Confirmation type: Final confirmation. Enter. Save
Create delivery: Use Shipping point 1000.
Create Billing.
India SAP CoE, Slide 53
Make to Stock and Make to Order.
1 PrepareMe
2 TellMe
3 ShowMe
4 LetMe
5 HelpMe
India SAP CoE, Slide 54
Additional Info
Requirement Class:
The requirement class is the controlling factor for the availability check & the TOR for all Sales
Document types.
The requirement class controls the requirement type and the requirement type controls the
planning strategy and the planning strategy controls MRP.
Requirement Type:
The system uses the predefined search strategy to determine the requirement type.
First, an attempt is made to find requirement type using the Strategy group, if not then MRP
group, if not then system assumes a special rule as combination of the Item category & the MRP
type. If the last attempt fails, the system declares that the transaction is not relevant for the
Availability check or TOR
Transfer of requirements are controlled by ---
Requirement type; Requirement Class; Checking group; schedule
line category.
Incase of MTO item category TAK has item category group 0001.
Incase of MTO with variant configuration item category TAC has
item category group 0002
India SAP CoE, Slide 55
