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Make-to-Order Production with

Variant Configuration

SAP Best Practices Baseline Package


(Japan)

SAP Best Practices


Scenario Overview 1

Purpose and Benefits:

Purpose
This scenario describes a business process, which is typical for companies
which are manufacturer of products with variants.

Benefits
Variants of a product were represented over one configrable material
Sales & Operations Planning can be done for predefined material variants
Scenario Overview 2

SAP Applications Required:


SAP enhancement package 4 for SAP ERP 6.0

Company Roles Involved in Process Flows:


Production Planner
Sales Administrator
Production Supervisor
Warehouse Clerk
Billing Administrator

Key Process Flows Covered:


Sales order processing for configurable material
Manufacturing
Delivery
Billing
Plant closing
Company closing
Scenario Overview 3

Detailed Process Description:

Make-to-Order Production with Variant Configuration


The scenario demonstrates sales order processing with materials with pre-selected
characteristic values (material variants) and components that are produced according to sales
quantities planned for these variants. If the sales order configuration is not available as a
material variant, then customer service can configure the material on the order by choosing
the required characteristic values. A sales order cost estimate is created on saving the order
which is subsequently used to valuate the cost of goods sold.
The process is triggered when an order for a configurable material is received from the
customer. The customer order is recognized in the MRP run resulting in planned order for
production of the material. If insufficient warehouse stock is available, purchase requisitions
are created for the raw materials required.
When the production order is created, target costs are calculated for the order lot size
(preliminary costing). During the production process, costs incurred are updated on the order,
which enables you to keep track of and compare target costs and actual costs at any time.
Period-end-closing activities are applied to the order. This includes Work In Progress
calculation and variance calculation. After this, Work in Progress is settled to financial
accounting and production variances are settled to management and financial accounting.
Production variances are settled to profitability analysis with the sales order as one of the
characteristics.
Process Flow Diagram
Make-to-Order Production with Variant Configuration

Order Daily
Event

Request for shipment


MTO Sales Confirmation Delivery Note Customer
worklist, Payment
Order enough received
inventory

Sales Delivery Due


Sales Order Configurati List AR Document
Entry (MTO)
Sales Administrator

on is
Available
as Material Yes
Variant?
Credit
Credit accept
accept Yes Stock Pick List
for ed(Cus
ed(Cus t.
t. Material
Variant 100003)
100003)
Credit is
Approv Availabl No
No No e?
ed Credit
Management Yes
Credit (108)
Management (Delivery
(108) Note)
Super
Prod.

Review Sales
v.

Orders with
Delay
Strategic Warehous

Transfer Order
e Clerk

Inventory Processing Post Goods


COGS (creation and Issue
confirmation in
backround)
Planner

Logistics
Planning:
Logistics
Planning (144)
Manufact

Manufacturing
uring

Make-to-Order Steps: Production


Production Order Processing
Make-to-Stock
(MTS) (145)
Admin.
Billing

Billing
Legend

Symbol Description Usage Symbol Description Usage Comments


Comments

Band: Identifies a user role, such as Accounts Role band To next / From last Diagram: Leads Flow chart continues on the next /
to the next / previous page of the previous page
Payable Clerk or Sales Representative. This band contains tasks Diagram
<Function>

can also identify an organization unit or group, common to that Diagram


rather than a specific role. role. Connection
The other process flow symbols in this table go into
these rows. You have as many rows as required to
cover all of the roles in the scenario. Hardcopy / Document: Identifies a Does not correspond to a task
printed document, report, or form step in a document; instead, it is
Hardcopy / used to reflect a document
External Events: Contains events that start or end the Document generated by a task step; this
External

scenario, or influence the course of events in the shape does not have any outgoing
to SAP

scenario. flow lines

Financial Actuals: Indicates a Does not correspond to a task


Flow line (solid): Line indicates the normal sequence Connects two financial posting document step in a document; instead, it is
tasks in a Financial used to reflect a document
of steps and direction of flow in the scenario. scenario generated by a task step; this
Flow line (dashed): Line indicates flow to infrequently-
Actuals
process or a shape does not have any outgoing
used or conditional tasks in a scenario. Line can non-step event flow lines
also lead to documents involved in the process flow.

Business Activity / Event: Identifies an action that Does not Budget Planning: Indicates a Does not correspond to a task
either leads into or out of the scenario, or an outside correspond to a budget planning document step in a document; instead, it is
Business Process that happens during the scenario task step in the used to reflect a document
Budget generated by a task step; this
Activity / document
Planning shape does not have any outgoing
Event flow lines

Unit Process: Identifies a task that is covered in a Corresponds to


step-by-step manner in the scenario a task step in Manual Process: Covers a task Does not generally correspond to
the document that is manually done a task step in a document;
Unit Process Manual instead, it is used to reflect a task
Proces that is manually performed, such
s as unloading a truck in the
warehouse, which affects the
process flow.
Process Reference: If the scenario references another Corresponds to
scenario in total, put the scenario number and name a task step in
Process here. the document
Existing Version / Data: This block Does not generally correspond to
Reference covers data that feeds in from an a task step in a document;
Existing external process instead, this shape reflects data
Version / coming from an external source;
Data this step does not have any
Sub-Process Reference: If the scenario references Corresponds to incoming flow lines
another scenario in part, put the scenario number, a task step in
Sub- name, and the step numbers from that scenario here the document
Process
Reference System Pass / Fail Decision: This Does not generally correspond to
System block covers an automatic a task step in the document;
Pass/F decision made by the software instead it is used to reflect an
Process Decision: Identifies a decision / branching Does not
ail automatic decision by the system
Decisio that is made after a step has been
point, signifying a choice to be made by the end usually executed.
user. Lines represent different choices emerging correspond to a n
Proces from different parts of the diamond. task step in the
s document;
Decisio Reflects a
n choice to be
made after step
execution