7 Replies Latest reply: Feb 10, 2008 6:21 AM by Sadhu Kishore RSS

SD cycle for MTO and MTS with Tcode

Chetan Sukdeo Bodade
Currently Being Moderated

Hi Friends,


Can anybody tell me the detail SD cycle for MTO and MTS scenario.I will reward full point for satisfied answer.





  • Re: SD cycle for MTO and MTS with Tcode
    Harsh Mathur
    Currently Being Moderated

    Hi Chetan,

    You need to clarify your requirement.

    Which process steps you exactly want to know.


    MTO -> Make to order

    You Start the production based on the Customer Order and Information.

    Every production order in this case is linked to the Sales order, further stocks are reserved to the sales order.


    MTS -> Make to Stock

    Production is started based on Forecast, and put in the stock.

    Based on the customer requirement, you book a sales order and pick it from the stock.


    Reward points if this helps.




  • Re: SD cycle for MTO and MTS with Tcode
    rahul racehorse
    Currently Being Moderated

    make to order


    You can use repetitive manufacturing as sales-order-oriented production. The system generates one or more planned orders that have a direct link to the sales order item. The material is manufactured on the basis of these planned orders. The manufacturing process is therefore initiated by sales orders.


    If you are using a valuated sales order stock in sales-order-oriented repetitive manufacturing, you create a product cost collector for the individual requirements material (the material that is manufactured for the sales order stock). The costs incurred in the production of the individual requirements material are collected on this product cost collector. The costs can then be analyzed on the product cost collector. You use the functions of Product Cost by Period.


    In sales-order-oriented repetitive manufacturing, the sales order stocks are usually valuated. This scenario is used in the automotive industry, for example. The production of each vehicle is triggered by a sales order (or by a sales order item). The costs incurred for each particular vehicle are only of secondary importance. Instead, the focus is on period-based analysis of the costs for all vehicles manufactured during a particular period, whose costs are collected on the same product cost collector. The costs are not collected and analyzed separately for each sales order item.


    make to stock


    Choose a make-to-stock strategy, if:


    --> The materials are not segregated. In other words, they are not assigned to specific sales orders.


    --> Costs need to be tracked at material level, and not at sales order level.


    You should always use make-to-stock production if you produce stock independently of orders because you want to provide your customers immediately with goods from that stock later on. You might even want to produce goods without having sales orders, if you expect that there might be customer demand in the future.


    This means that make-to-stock strategies can support a very close customer-vendor relationship because your objective here is to provide your customers with goods from your stock as quickly as possible. Returns that have passed quality inspection and other unexpected goods receipts can be used for other sales orders.


    This does not mean that you have unreasonably high stock levels. You can avoid them by doing one of the following:


    => Create a production plan in advance (in Demand Management) to plan your stock.

    If you make use of this option, you may also want to decide whether sales orders exceeding your plan are to affect production or not.


    => Receive sales orders relatively early on (using scheduling agreements, for example).

  • Re: SD cycle for MTO and MTS with Tcode
    G Lakshmipathi
    Currently Being Moderated

    Dear Chetan


    MTO is where production will commence only after creation of sale order, whereas, MTS is materials will be produced regularly and they are not assigned to any particular sale order.


    For more information, check the links


    [Make-to-Order Planning  |http://help.sap.com/saphelp_46c/helpdata/en/84/f1064a01f011d295a90000e81d646f/frameset.htm]


    [Strategies for Make-to-Stock Production |http://help.sap.com/saphelp_46c/helpdata/en/cb/7f93cc43b711d189410000e829fbbd/frameset.htm]



    G. Lakshmipathi

  • Re: SD cycle for MTO and MTS with Tcode
    Rakesh Singh Chauhan
    Currently Being Moderated

    Dear Chetan,


    The Made TO Order Cycle:


    The sale department passes on the Made to order-Sales Order to the Material department so that material requirement is analyzed. This is done in SAP by carrying on an MRP Run for all the levels of the product BOM. This MRP Run would create Planned Orders for the shortages. Here the planned orders for fert sub assemblies, Components etc, are created. This planned orders for materials produced in house are converted in to Production order and planned orders for materials 

    procured from outside are converted in to Purchase order. The creation of Production order through the planned orders will convert all the dependant requirements in to dependant reservations.


    The dates of production or purchase are decided through the total replenishment time mentioned in the material master, If it is, in-house production, then the Route times precede over the total replenishment time entered in the material master. And the availability of all the components is ruled by the availability checking rules and by availability checking scopes. Thus whenever the system declares a product to be ready or available by a date it implies that the system has checked the availability of the material with respect to the Ware house stock, in coming stock   (Receipts) and all other planned orders already existing for the product or material. 


    In the Made to order production, sales order produced for Fert and Sub assemblies are converted in to production order during MRP run. The production orders created have a specific quantity, specific Basic start date and a specific Basic Finish Date, a set of operations and a set of component attached from the BOM. In course of production the quantities produced in the operation for an order should be confirmed so that the current status of work is available in real time situation. The components required for production are issued to the production order through goods issue by a movement type 261 and the issue is always made to the reservations or to the order, thereby clearing the reservations. Issues of unplanned components are made as new items issue and not as order issue. The quantities, for an order which are produced completely are the put in to stock i.e. a Goods Receipt is done. 


    Thus the made to order cycle starts with the sales orders and converting them to Production Orders through MRP Run and there off confirming produced quantities for an order and finally putting the order in to stock.  


    The Cycle of Made to order: Steps: MTO Scenario


    1. Material Creation (Made To order Material with major changes of: Item Category: 0004-make to order/assem.,or 0001-make to order)

    2. Route Creation

    3. Creation of BOM

    4. Sales order

    5. Production order Scheduling, Costing, Release and Save

    6. Production order Quantity confirmations for operations, Parallel task of material issue to order or to reservations (261) 

    7. Fully Produced Production Quantities will be put into stock (GR)

    8. Delivery against sales order

    9. Invoicing.  



    The Made To Stock Cycle 


    The Made to stock scenario will start from Demand Management here we can create Planed independent requirements manually or by using data from SOP. After MRP run system will create planned orders which we can convert to Production order As the Stocks produced there off are not customer stock or the stock is not attached to any specific customer. Further confirmations are done and issues of material are carried out to the production order. Finally the production is put in to stock (GR). 


    Here at any point of time a sales order might come in and delivery to the customer is done from the existing stock. 


    Production Master Data 


    The Production Master Data consists of Material Master, Bill of Material, Work Center, Route, and Production Line Design.  


    The Material Master is created first for all components involved in making the Final product.   Then these components are put in a product relationship i.e. a list of materials required to make the final product are put in a hierarchy, this is called a Bill of Material. 


    The next task is to identify the work centers required to produce the product; if the work centers are already created then they can be readily put in a sequence, which would be a sequence of work centers required to produce the product. This sequence of work centers one after the other (in the sequence of work to be done) is called a Route. 


    The Cycle of Made to stock: Steps: MTS Scenario


    1. Material Creation (Made To Stock Material with major changes of: Item Category: NORM )

    2. Creation of BOM

    3. Route Creation

    4. Demand requirements

    5. MRP Run

    6. Creation/conversion of Production order (Made To stock), Scheduling, Costing, Release and Save

    7. Production order Quantity confirmations for operations, Parallel task of material Issue to order or to reservations (261) 

    8. Fully Produced Production Quantities will be put into stock (GR)

    9. Sales order Creation 

    10. Delivery against sales order

    11. Invoicing.   



    Please let me know in case of any queries.