Advanced Intercompany Sales MTO and Variant Configuration (7DM) in S/4HANA Cloud, Public Edition

[Qi_Liu]

This blog will delve into the Advanced Intercompany Sales MTO and Variant Configuration in SAP S/4HANA Public Cloud, scope item 7DM, revealing best practice processes and key configuration information.

This scope item enables Make-to-Order Production with Advanced Variant Configuration in advanced intercompany sales. It partially combines those functions and requires the following scope items as business conditions:

IYT - Make-to-Order Production with Variant Configuration

BJE - Make-to-Order Production - Finished Goods Sales and Final Assembly

5D2 - Advanced Intercompany Sales

I will name it as 5D2+MTO+AVC in short to distinguish between difference scenario combinations in certain extended discussions. Please note, this scope item is introduced since 2502 Edition and in Public Cloud only. The initial county content available now is US and DE.

Index

Business Process Overview

CBC Business Configuration

Business Partner Master Data configuration

Product Master Data configuration

 

Business Process Overview

In our show case, the direction is opposite to that in the best practice scope item 7DM. US company (e.g. company code 1710) sells goods to customer, and the goods are delivered from a plant, which belongs to DE company (e.g. company code 1110).

1.     Create Sales Order with Configurable Material (Single Level)

In APP Manage Sales Orders (F1873) , once the plant 1010 is entered in item 10, this sales order is considered as advanced intercompany sales.

Please note the combination of OR+CBTC and transit plant 1710 need to be attached when submitting incident requesting expert configuration to enable 7DM scope item in component XX-S4C-OPR-SRV.

Usually, the variant configuration screen will pop up and you have all the options to select.

After saving, you can find the external customer sales order 54310 appear in APP Monitor Value Chains (F4854) . Expand the sales order by clicking the arrow, we can see the intercompany sales order and purchase order has been created automatically.

2.     Manufacturing Steps Production Order Processing

There is no stock for SO 54310 if we check the stock report. To produce the material and get it into Sales Order stock, let’s execute the following manufacturing steps.

2.1  Material Requirements Planning for Sales Order

Find the SO in APP Monitor Material Coverage - Net / Individual Segments (F2101A) and open the manage material coverage view, click Start MRP Run. Planned order 4000002295 is created.

2.2  Create Production Order

After converting, production order 1005703 has been created.

2.3  Release Production Orders

APP Manage Production Orders (F2336)

2.4  Pick Components (Picking List)

APP Pick Components for Production Orders (CO27) to post the picking list

2.5  Confirm Assembly Activities

This process step shows you how to confirm assembly activities via APP Confirm Production Operation (F3069)

2.6  Post Goods Receipt for Production Order

This process step shows you how to post the goods receipt for the production order via APP Post Goods Receipt for Production Order (F3110)

3.     Create Delivery

APP Create Outbound Deliveries - From Sales Orders (F0869A) to create outbound delivery

After clicking Create Deliveries, outbound delivery order 80030505 was created as shown in the Monitor Value Chain APP.

4.     Perform Picking and Post Goods Issue

APP Manage Outbound Deliveries - VL06O (VL06O_CLOUD)

5.     Confirm Transfer of Control Dates

Confirm internal transfer of control dates. Normally the transfer of control dates is confirmed by API or TM integration based on Incoterms

6.     Create Intercompany Invoice

APP Create Billing Documents (F0798)

Choose billing type Intercompany Invoice (IV2) and maintain billing date

7.     Create F2 Invoice

Choose billing type Invoice (F2) and maintain the billing date

CBC Business Configuration

7DM is disabled for the standard document types and item categories by pre-delivered configurations. The pre-delivered configurations must be enabled through an expert configuration request by raising incident using the component XX-S4C-OPR-SRV. Please state explicitly you want to activate 7DM (don't mix up with 5D2 activation process in the incident or the operation team wont proceed correctly). Providing the combination of Sales Document Types and Item Categories:

Also please request assigning Transit Plant 1710  to Company Code 1710 in our case.

Business Partner Master Data configuration

Please refer to 5D2 and 5HP setup guide or my previous blog post 1P9 and 5HP in Chinese. Translation via Chrome can be automatically done. In future, I might also provide corresponding English blogs for intercompany series if needed.

Product Master Data configuration

Please make sure Strategy Group: Make-to-order for configurable material (25) in the delivery plant

Please make sure the product is configurable.

Additional Tips:

5D2+VC without MTO is also working if you change the procurement type to F (external procurement ).

The features covered in this article are based on SAP S/4HANA Cloud, Public Edition 2502, please refer to the latest information for changes in subsequent versions.

Hope you LIKE it if it addresses your issue. After that, please feel free to comment after following my account and I will reply ASAP.

More:

SAP S4HANA Cloud Public Edition Logistics FAQ

Intercompany integration scenarios FAQ in Cloud ERP, Public Edition