LINK MTO IN PRODUCTION TO SALES ORDER LINE ITEM

[Former Member]

Hi

Please advise if a production order for MTO items can be linked to sales order (line items) so that cost of raw material will be used to calculate cost in sales order.  We currently use 1 code for all items and the cost is never correct as it is standard 0.01 cents for everything.

[Former Member]

From my perspective, MTO as a strategy only links together the sales order and production order, and sales order stock in finished goods.  It does not affect or change the standard price / cost of the material on the sales order.  I believe that the user would need to execute the sales order costing to drive that behavior, assuming that your pricing procedure allows that.  Even then it would be based on the standard BOM, not a changed BOM. 

Thanks and good luck, Curt Hockaday

[jagamohandas]

Hi,

The question is not very clear but what i could understand is you want to do a sales order costing and want to include all ROH material for that.

In a MTO senario production order is already linked to sales order.You can set the individual and collective indicator setting to 1 in material master with a proper MTO strategy.

You can use multiple code for multiple item and make the Ind/collective indicator to 1 to do the sales order costing.

Thanks,

[ramakanth_sagar]

Hi,

If it is MTO, the Production Order will be linked to the Sales order by default and costing will be done for the Sales order only. There is no need to link it exclusively once again.

Thanks

[Former Member]

Hi - it is not linked by default on our side.  We have one MTO code for many different items so the cost always changes according to the amount of material used - for instance we make slings so the MTO code will say Duplex Flat Sling 10 Ton.  Now the customer orders this item but the wants the sling to be 2 meters long - so the product now becomes Duplex Flat Sling 10 Ton x 2 meters.   The next customer might order a 5 meter etc.  As you can see the MTO production cost will always change for every sales order since the material being used is different for each.  At the moment the MTO cost is 0.0 and this does not change when invoicing - you cannot see the gross margin at all.  So how would I link a specific production order with a line on a sales order?

[ramakanth_sagar]

Hi,

Please research if Variant configuration or other options are applicable in your case.

Thanks

[former_member209265]

Hi,

Need little more explanation please. Then I will be able to help you.

Regards,

Krishnendu.