Today will be going to cover MTS configuration means Make to stock scenarios In SAP. When a customer requests a product, a company prepares goods for sale to that customer. Also, goods are sometimes made for a specific customer and sold only to him (most cases)
What Is MTS | Make to stock
In a Make To Stock environment, production begins Before a sales order is received, and any receipt from the production line is placed in inventory, from which customer orders are fulfilled. This process is very tightly integrated with PP, MM, SD Module. Let’s understand the Rational configuration behind this
In a production scenario, the stock is made irrespective of orders because Organization wants to supply their customers with goods from the stock immediately afterward. If an organization expects customer demand in the future, it might even want to produce goods without sales orders. This means that make-to-stock strategies can support a close relationship between customers, as your goal here is to deliver your customer’s goods on the stock as soon as possible.
Make to stock process scenarios
This scenario is used when we have to make stocks irrespective of orders because we want to supply goods from that stock to your customers immediately. Goods can be manufactured in this field without sales orders if you expect customer requests in the future. This allows make-to-stock strategies to support a close relationship between customers as your goal is to supply goods from your stock as soon as possible to your customers. Normally products are produced on the basis of predicted sales.
Generally , Company produce stock independently of orders always use make-to-stock production, since Company want to deliver products immediately.
If a company expects customer demand in the future, it might even want to produce goods without sales orders. This allows make-to-stock strategies to support a close relationship between customers as the goal is to supply goods from stock as soon as possible to the customers.
In case of any sales orders, returns that have passed quality inspections and other unexpected receipts may be used. The configuration depends on customer requirements.
When stock are made ready to Make to Stock is used:
- To decide whether sales orders exceeding your plan are to affect production or not.
- Receive sales orders relatively early on to have a production plan.
Make-to-stock strategy :
- The materials are not segregated i.e. they are not made against specific sales orders.
- Costs need to be tracked for the material, and not at the sales order level.
- Create a production plan in advance to plan stock.
Make to Stock Process Flow
This process describes the planning of a product for make-to-stock production. After requirements planning, we analyze the stock situation and convert a planned order into a production order.
Also, we can enter a sales order that is not relevant to the planning. The production order is then released and saved. After the material has been withdrawn, the operations are confirmed. The sales order is delivered and settled. Please refer the below diagram
Material Master preparation for make to Stock scenarios
In the Material Master, there are few parameters that need to maintain. In Sales Org 2 screen-Item Category Group is indicated
MRP Type in indicate type of Material Requirement type ,The MRP controller is in charge of material requirements planning as well as material availability.In Next MRP 1 screen-MRP Type and MRP Controller must be mentioned as mention below.
Configuration assigns planning strategies to a strategy category, which is then assigned to a material master in SAP R/3’s MRP 3 view. In screen MRP 3-Strategy group must be mentioned
Make to Stock Configurations
Define Requirement Types for MTS
Control parameters for preparing and consuming planned independent requirements and customer requirements are contained in the requirements type
IMG-> Sales and Distribution-> Basic Functions-> Transfer of Requirements->Define Requirement Types
Assignment of Requirement Types to transaction
IMG-> Sales and Distribution-> Basic Functions-> Transfer of Requirements ->Determination of Requirement Types Using Transaction
IMG -> Production -> Material Requirement Planning ->Master Data->Independent Requirements Parameters ->Planning Strategy -> Define Strategy
Assign MRP Group to Strategy Group
IMG -> Production -> Material Requirement Planning ->Master Data ->Independent Requirements Parameters ->Planning Strategy -> Assign MRP Group to Strategy Group
Make to Stock Product Planing
SAP Easy Access ->Logistics ->Production ->Production Planning ->Demand Management ->Planned Independent Requirements ->Create (MD61)
Make to Stock-Executing Multi-Level Requirements Planning
Convert Planned Order to Production Order
Displaying the details of planned order in MD04. Choose -> Prod. Order ( Convert planned order into production order).
To release the order, choose the flag. To schedule the order, choose the next icon. Save-Prod. Order is created
Production created will be created
Withdrawing the Material for the Production Order
SAP Easy Access ->Logistics àMaterials Management ->Inventory Management ->Goods Movement ->Goods Issue (MB1A).
Enter the Prod. Order created
Choose “Adopt + Details”.Save.
Confirming Production Order
SAP Easy Access ->Logistics -> Production ->Production Control ->Confirmation ->Enter ->For Operation ->Time Ticket (CO11N)
Goods Receipt against Production Order
Tcode mb31-movt. Type 101
Create Sales cycle
Now Everything has been settled, Create Sales Order (not relevant for planning), create delivery & billing that ends with a complete Make To Stock cycle in sap.
FAQ-Frequently Asked Questions
What is the difference between “make to order” and “make to stock” in sap
Order-to-Order (MTO): Orders are made through actual consumer demand and then the individual customer who ordered it is made to order
Make-to-Stock (MTS): make-to-stock involves the manufacturing or production of products based on the expected demand of the consumer. Products are stocked for future sales that are not produced and will be distributed from the warehouse or distribution center.
What is Requirement Class
The requirement class is the controlling factor for the availability check & the TOR for all Sales Document types. The requirement class controls the requirement type and the requirement type controls the planning strategy and the planning strategy controls MRP.
What is Requirement Type
The system uses the predefined search strategy to determine the requirement type. First, an attempt is made to find the requirement type using the Strategy group, if not then the MRP group, if not then the system assumes a special rule as a combination of the Item category & the MRP type. If the last attempt fails, the system declares that the transaction is not relevant for the Availability check or TOR
Hope this article help you understand make to stock process flow …. Happy Learning ..!!
Please check out these tutorial links to learn more about SAP
- Available to Promise (ATP)
- Replenishment lead time (RLT)
- Sales Integration with other Modules
- User exit
- Fiori App
- Third-Party Sales in
Looking for good books to read ? try this one