๐๐๐ โ ๐๐ช๐ก๐ก ๐พ๐ฎ๐๐ก๐ ๐๐ฃ๐ฉ๐๐๐ง๐๐ฉ๐๐ค๐ฃ: ๐๐ฟ + ๐๐ + ๐๐ + ๐๐๐พ๐ + ๐๐ ๐
In todayโs customer-centric environment, companies win when they can deliver customized products on demand.
This is exactly where the Make to Order (MTO) strategy becomes powerful.
Unlike Make to Stock (MTS), MTO produces only after receiving a sales order, ensuring lower inventory, higher flexibility, and accurate costing.
๐ Complete MTO Process Flow (with SD + MM + PP + QM + FICO)
1๏ธโฃ Sales Order (SD โ VA01)
โคท Customer requirement triggers the MTO cycle.
2๏ธโฃ MRP Run (PP โ MD02)
System plans required materials.
โคท Generates Planned Orders (correct first output).
3๏ธโฃ Planned Order Processing
A) Internal Production (PP)
Convert Planned Order โ Production Order (CO01)
โคท Release Order
โคท Issue Components (Goods Issue -MIGO)
โคท Production Order Confirmation (CO11N/CO15)
โคท Goods Receipt into stock (MIGO)
B) External Procurement (MM)
Convert Planned Order โ Purchase Requisition
โคทSource determination & Purchase Order creation
โคทGoods Receipt (GR)
โคทInvoice Verification (LIV โ MIRO) โ sent to FICO for posting
4๏ธโฃ Quality Management Integration (QM)
GR triggers QM inspection lot
Usage Decision (UD)
โ๏ธ Pass โ Stock updated
โ Fail โ Blocked stock / Rework process
5๏ธโฃ Delivery & PGI (SD)
โคทDelivery document creation (VL01N)
โคทPost Goods Issue
6๏ธโฃ Billing (SD โ FICO)
โคทInvoice generated (VF01)
โคทAccounting document automatically flows to FICO
7๏ธโฃ Result Analysis & Settlement (FICO โ KKA2/KO88)
โคทAnalyze production order cost vs. revenue
โคทSettlement to COPA / GL for final closure
โฅ Key Benefits of MTO
โ๏ธ Lower inventory carrying cost
โ๏ธ Customer-specific products with high satisfaction
โ๏ธ Full traceability of production, cost, and quality
โ๏ธ Better profitability with accurate RA & Settlement
๐ค Community Support:
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