MTO (Assembly Processing)

(SCM600 – SD Processes)
MTO Flow:

Make-to-order production is characterized by the fact that materials are not stored in the warehouse but
produced especially for a particular sales order.
An individual customer requirement is generated from the sales order item and transferred to materials
planning. You can use materials planning to plan requirements. Once this has been done,
production is carried out. After the product has been manufactured, you post it by goods receipt to sales orders
stock specifically for this sales order item. As soon as the delivery is due, you can enter the delivery in SD and
post goods issue. This reduces the sales order stock. Then you enter a billing document in SD.

(1) MTO Production without Assembly Processing:

The requirement quantity (planned independent requirements), delivery date and configuration
specifications are transferred from the sales order to materials planning as an individual customer requirement.
You then use a planning run to generate a planned order. Here, bills of material are exploded and
dependent requirements for the assemblies and components are generated.
As soon as production can start, you create a production order from the planned order.
The system returns the confirmed quantity and delivery date from the production order to the sales
order.
(2) MTO Production with Assembly Processing:
 The individual components for the final product have already been produced for make-to-order
production with assembly production. You then only need to assemble the components according to the
customer's wishes. This means you need just a one-level bill of material explosion and you do not need to
generate dependent requirements.
This means that you do not need a planning run at this point for make-to-order production with
assembly processing. You can create a production order directly from the sales order.
The system returns the confirmed quantity and delivery date from the production order to the schedule
lines in the sales order.
Any changes made to the confirmed schedule lines or the delivery date are immediately visible in the
sales order and/or in the production order.

Cost Management per Item:

Packing:
 During packing, delivery items can be assigned to packaging materials. The handling units created by
this can then be packed in additional packaging materials.

Delivery from Sales Order Stock:

After the material has been produced, it is posted as a goods receipt to the sales order stock.
Sales order stock is special stock which can be used only for the special sales order.
During goods issue of the delivery, the sales order stock is reduced accordingly.