Make-to-order (MTO) scenario, specifically in handling production orders and settlements.
1. We received a Machine order from a customer and, based on their requirements, created a sales order for Rs.30 Lakh.
2. Subsequently, a production order was generated based on the sales order; however, certain known components were unavailable at the time of production order creation.
3. To address this, we proceeded to create a production order for only Rs.15 Lakh, settling it against the original sales order.
4. Following this, we encountered a short supply of the missing components, and a decision was made to create a free-of-charge (FOC) sales order for Rs.5 Lakh.
5. A new production order was then generated with regard FOC sales order. However, our current challenge lies in settling this second production order with the original sales order, as our management wishes to analyze machine-wise profitability rather than the overall profit.
Thank you for your support, and we look forward to your guidance on resolving this issue.
Kr,
Krishna Kota
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