internal customer

[Former Member]

hello, friends.

please help me identify if there is a standard SAP scenario with the following processes:

1. the sales department in a company sends an order (MTO) to the manufacturing plant within the same company

2. the manufacturing section produces and ships the finished goods

3. the sales department receives the goods in its distribution centers

4. the sales department sells the finished goods under Sales from Stock scenario

i was thinking of the following alternatives -

1. STO (how can PO from the sales department trigger an MTO production?) or

2. manufacturing issues a sales order, delivers from sales order stock to sales department, then sales department GRs the goods (but referenced to what?)

other concerns:

1. if manufacturing and sales are both located within the same plant, is STO still applicable?

2. if movement is within the plant, will accounting documents still be created?

3. is there a simpler standard solution?

i would appreciate your valued inputs!!!

many thanks...

[Lakshmipathi · Accepted solution]

Dear Jonathan

The scenario what you had explained is best suited for MM / SD route. That is you treat the distribution centers as a warehouse from where they release a PO on delivering plant. Delivering plant will stock transfer the ordered material against the respective PO and in turn, distribution centers can do MIGO and inward the material.

Now from distribution centers, they can follow the normal SD process and this is the easy and simple approach. In fact, I feel, if you go for MTO scenario, it will have lot of complications.

Coming to your concerns

if the distribution center and manufacturing activities are dealt with within the same plant, then you can consider 311 movement type

Let us wait what others say !!!!!!!!

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

many thanks for your quick reply, mr lakshmipathi.

i have more or less the same idea. just for curiosity, i tested several alternatives. the MTO portion was, indeed, problematic. if the manufacturing section was to issue a sales order, then an outbound delivery would be needed to issue the goods out of sales order stocks... but the same delivery could not serve as reference for MIGO.

another complication of the above scenario is that if strategy 20 is maintained in the material master, and there is only 1 plant, the SD side will have problems issuing sales orders (sales from stock scenario) to customers.

i also would tend to favor the PO/STO option.

and, yes! i will wait for other opinions.