Automatic Creation of Production Order after Sales Order Approved and Stock in Transit Scenario

[Former Member]

Business requirement:

• Creation of Production Order only after the approval / release of Sale Order.
• (Cost of goods sold) COGS should not post until proof of delivery is not completed.

Process Flow:                                                       

• Activate business function first LOG_MM_SIT functionality.
• Create Quotation (in my scenario I am using pro forma invoice as quotation) then create sales order with reference to quotation and in sales order credit check is activate.
• Due to credit limit sales order is blocked, as sales order is released from credit check then production orders will create automatically and while creating delivery order system determine batches automatically or manual.
• COGS will post when proof of delivery is done. For more about Stock in Transit review LOG_MM_SIT functionality.http://scn.sap.com/docs/DOC-48809

Configuration:I am supposing that you know about the basic SD Configuration. I am using strategy 82 in material master and marked POD check box in customer master under shipping tab and assigned valuation class in material master as shown in screen shot.

Copy sales order from OR to ZXLX and Copy item category TAK to ZSIT and ZSIT item category is marked as credit active as in screen shot.

Using simple credit limit check and delivery block as in screen shot.

Copy schedule line category CP to ZS screen shot. Maintain copy control settings from order to delivery.

Assign schedule line category with MRP type PD as shown in screen shot.

Using requirement type KMFA and requirement class 201 for automatic production order creation as showing in screen shot.   

Front End Process Flow

Creating sales order with reference to quotation (pro forma invoice in my scenario) and system will execute simple credit check as shown in screen shot.

System creates sales order and will not create production order until someone approves it. As you can see in screen shots of COOIS report there is no production order created against that sales order before approval of sales order.

Sales order will release by using Tcode VA14L as in screen shot.

Now again execute COOIS then you will see that production order has been created automatically with reference to sales order as shown in screen shot.

Now PP person will release production order and do confirmation and post inventory in warehouse and stock will update with reference to sales order as shown in screen shot of MMBE report.

Now create delivery order with reference to sales order and put manual batch or for auto batch determination (see auto batch determination). While creation of delivery order you will see Post Goods Issue tab is in display mode only. Put batch and other information and save delivery order. Now execute stock movement report MB5SIT as shown in screen shot, stock is in Stock TB delivered.

Again go back to delivery order and do the Post Goods Issue then system will generate one material document here and then execute MB5SIT report again, you will see stock is now shifted from Stock TB delivered to Issuing Valuated SIT as shown in screen shot, but it will not post COGS entry until we did not do Proof of Delivery (POD) as per LOG_MM_SIT functionality.

Now do the POD and then you will find that one material document is also created at this stage and also stock will transfer from Issuing Valuated SIT to Delivered Stock in report MB5SIT as shown in screen shot.

Now for complete document process flow see the document flow on screen shot.

Summary and Achievements:

• Credit control on sales order.
• Production order only created after approval / release of sales order by some authorized person.
• Production with reference to sales order.
• Inventory is according to sales order in stock report.
• COGS entry post on Proof of Delivery (POD).
• Tracking of stock while in transit.

Hoping it will help you.