Delivery from a different plant than production in Make-to-Order (KMAT Material)

[AAkash1]

In SAP S/4HANA , we produce configurable steel (KMAT) in Plant A and move it to Plant B for shipment.

The sales order is created for Plant A (production site), but physical delivery must occur from Plant B (port/distribution). How can I handle this? As delivery always takes the plant from the sales order? is there any work around?

[Stanislaw_Stefanowski]

Hi @AAkash1,

I think that this community thread may be helpful for you - Sales Order and Production in different plants. 

In my opinion, the sales order should be created in plant B, as suggested. However, production requirements need to be transferred to plant A, for example via STR (Stock transfer requisitions).

Best regards

[Ramki]

Hi Aakash,

Have never tried this as KMAT scenarios are not very common and it has some restrictions in SAP compared to other materials. 

If you define the Special Procurement Key 80 in Material master, would it help ? Can you test it and see ?

Sale order in Plant - B; But production in Plant A (as per Sp.Proc 80).  

Best regards,

Ramki

[Dominik_Tylczynski]

Hello @AAkash1 

A plant in a sales order is called "delivering plant". It needs to be plant B in your case, because you are shipping from plant B. To look for workarounds, don't try to twist the system, just use the system as it is designed.

Best regards

Dominik Tylczynski

[AAkash1]

Thanks for your comments , we have MTO, production is happening in plant A , for that we need a Sales order for plant A and hence production is happening there but delivery should happen from plant B which is not in same country hence a legal requirement to have a plant for dispatch area 

[JanStauffer]

Hi AAkash1, 

I don't quite understand what you mean, you've already said that you transport the material to plant B. So you do this physically but don't map it in the system?

Without going into great detail, I would say it is best to transfer the material to Plant B (EUB) in the system, so that you can enter the sales order correctly in Plant B and the demand is also transferred correctly to Plant A with the created EUB so that the correct quantity can be produced.

Regards Jan

[AAkash1]

Thanks Jan, I am adding more details. Physically we are doing production in Plant A, once material is produced we create a STO to move material to Plant B as that is our dispatch area (also this is in another country). Now I have to create delivery which I am not clear as plant is drived from the sales order and sales order was for the plant A.

[JanStauffer]

Hi AAkash,

Ok, i understand better now what you mean. That should still work.

Take a look at this post and the linked ones. Hope this helps.

Kind regards Jan

[Ramki]

Hi Aakash1, I do not think SAP allows STO for MTO items (Variant Configuration) unless you create a variant item with required characteristic values. If you have to do variant configuration in Sales order, you will not be able to do Cross-country STO as stock will be assigned to sales order. If you can create a variant with required characteristics, then you can manage your scenario.

[AAkash1]

@Ramki, thanks. Could you elaborate a bit? for example I have to enable varient configurator for both plants?

[Ramki]

Managing KMAT items in SAP is complex and you need someone with good expertise in variant configuration and also costing (PP and CO aspects of the scenario). When you create a sales order, you will assign characteristics for variant configurable item which will be passed on to corresponding production order too. When production is done, the stock is assigned to sales order. As sick is assigned to sales order (item category X or E), you cannot use stock transfer (stock in transit uses the same field of item category). Hence sales order assigned stock cannot be used for stock transfer. Solution is to create a material master - variant item for the configurable material with required characteristics and use this item in sales order. The entire scenario is more complex as you need moving the stock to another country too which requires export and import relevant conditions too and managing the costing is more complex. PP. SD and CO consultants should sit together and try the complete scenario in SAP. 

If you create variant material, you can also try procurement type in MRP 4 view in plant B ( stock transfer from another plant).. in this case, of you create sales order in plant B (delivery from B), MRP creates stock transfer from A.. In the material master for plant A, you define it for indoor production. MRP in A creates planned order/production order thanks to stick transfer reservation from plant B. Once produced you can stick transport to plant B. 

[AAkash1]

Thanks , Thanks , but STO is still possible ? If I activate variant configuration in both plants ?

[JanStauffer]

Hi AAkash1,

I don't quite understand what you mean, you've already said that you transport the material to plant B. So you do this physically but don't map it in the system?

Without going into great detail, I would say it is best to transfer the material to Plant B (EUB) in the system too, so that you can enter the sales order correctly in Plant B and the demand is also transferred correctly to Plant A with the created EUB so that the correct quantity can be produced.

Regards Jan