MTO

MAKE TO ORDER PROCESS

BY : YAMSANI SATHEESH
Purpose

1. The scenario considers production of a material for a

specific individual sales order.

2. 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 and other
intermediate departments
Uses

1. Make-to-order is used in the following

environments:
2. Production using specification/requirement of
customer.
3. Assemble-to-order
Sales Order Role
1. Sales Order plays a major role in the process of MTO.
2. Sales Order is the key document in the whole process of product
manufacturing cycle in Plant or in the procuring process.
3. This creates as a demand in the Plant
4. It also influence on the MRP. So that automatic proposals will be
created for the materials. If that is an external procurement then it is
PO if not it will be plant order.
5. Procurement proposals also tag the sales order for which the
demand has generated.
6. This act’s as a reference document in each stage in the process of
production, Process order, quality check storage location (as a
customer stock).
Make to Order (using sales order)-Flow
 User Settings in MMR

In screen Sales Org 2-Item Category Group is indicated,

in case of MTO specify 0001
To plan the order, user must specify
MRP settings
 If the material is in-house production specify “ In house
production” time, if material is externally procured one, specify
“GR processing time”
The strategy group “groups all the planning strategies that can be
used for a particular material”
Apart from this specify Availability check to transfer requirements
Create Sales order, where the item category would be TAK
Check the requirement of the material MRP which would be
carried out for the sales order using MD04
 Maintain stock at Storage location using MB1C Provided : Material
, Quantity , Storage location, Sales Order No and line item.

► Note : Sales Order creates an ease that the item has to be shipped to the customer. Here
we understand that every thing is hard linked to the sales order in the MTO process.
Post execution of MB1C for that particular material
The next action is PGI with the reference to Sales order
Later the stock will be moved to sales order stock and can be
processed to delivery and Invoice as normal process
Invoice creation in VF01 with the reference to delivery document.

Document flow for

that particular
sales order
Thank You.

Any Questions ?