Make-to-Order Production with

Variant Configuration

SAP Best Practices Baseline Package
(Japan)

SAP Best Practices

Benefits  Variants of a product were represented over one configrable material  Sales & Operations Planning can be done for predefined material variants . which is typical for companies which are manufacturer of products with variants.Scenario Overview – 1 Purpose and Benefits: Purpose  This scenario describes a business process.

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 .

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

Process Flow Diagram Make-to-Order Production with Variant Configuration Order Daily Event Request for shipment MTO Sales Confirmation Delivery Note Customer worklist. t. 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. Review Sales v. Billing Billing . Material Variant 100003) 100003) Credit is Approv Availabl No No No e? ed Credit Management Yes Credit (108) Management (Delivery (108) Note) Super Prod. 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.

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