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Business requirement:

  • Creation of Production Order only after the approval / release of Sale Order.
  • (Cost of goods sold) COGS should not post until proof of delivery is not completed.

Process Flow:                                                       

  • Activate business function first LOG_MM_SIT functionality.
  • Create Quotation (in my scenario I am using pro forma invoice as quotation) then create sales order with reference to quotation and in sales order credit check is activate.
  • Due to credit limit sales order is blocked, as sales order is released from credit check then production orders will create automatically and while creating delivery order system determine batches automatically or manual.
  • COGS will post when proof of delivery is done. For more about Stock in Transit review LOG_MM_SIT functionality.http://scn.sap.com/docs/DOC-48809


Configuration:I am supposing that you know about the basic SD Configuration. I am using strategy 82 in material master and marked POD check box in customer master under shipping tab and assigned valuation class in material master as shown in screen shot. Valuation Class in material master 01.JPG

Copy sales order from OR to ZXLX and Copy item category TAK to ZSIT and ZSIT item category is marked as credit active as in screen shot. ZSIT credit check 02.JPG

Using simple credit limit check and delivery block as in screen shot. Simple credit check 03.JPG

Copy schedule line category CP to ZS screen shot. Maintain copy control settings from order to delivery. Schedule line item category 04.JPG

Assign schedule line category with MRP type PD as shown in screen shot. Schedule line to MRP type 05.JPG

Using requirement type KMFA and requirement class 201 for automatic production order creation as showing in screen shot. Assignmnt to requr. type to requ. class to item categ. 06.JPG  

Front End Process Flow


Creating sales order with reference to quotation (pro forma invoice in my scenario) and system will execute simple credit check as shown in screen shot. Sales order creation and blocked for production 08.JPG

System creates sales order and will not create production order until someone approves it. As you can see in screen shots of COOIS report there is no production order created against that sales order before approval of sales order. COOIS before 09.JPG

Sales order will release by using Tcode VA14L as in screen shot. VA14L 10.JPG

Now again execute COOIS then you will see that production order has been created automatically with reference to sales order as shown in screen shot. COOIS after 11.JPG

Now PP person will release production order and do confirmation and post inventory in warehouse and stock will update with reference to sales order as shown in screen shot of MMBE report.

Stock 12.JPG

Now create delivery order with reference to sales order and put manual batch or for auto batch determination (see auto batch determination). While creation of delivery order you will see Post Goods Issue tab is in display mode only. Put batch and other information and save delivery order. Now execute stock movement report MB5SIT as shown in screen shot, stock is in Stock TB delivered.

MB5SIT 13.JPG

Again go back to delivery order and do the Post Goods Issue then system will generate one material document here and then execute MB5SIT report again, you will see stock is now shifted from Stock TB delivered to Issuing Valuated SIT as shown in screen shot, but it will not post COGS entry until we did not do Proof of Delivery (POD) as per LOG_MM_SIT functionality.

MB5SIT 14.JPG

Now do the POD and then you will find that one material document is also created at this stage and also stock will transfer from Issuing Valuated SIT to Delivered Stock in report MB5SIT as shown in screen shot.

15.JPG

Now for complete document process flow see the document flow on screen shot. 16.JPG


Summary and Achievements:

  • Credit control on sales order.
  • Production order only created after approval / release of sales order by some authorized person.
  • Production with reference to sales order.
  • Inventory is according to sales order in stock report.
  • COGS entry post on Proof of Delivery (POD).
  • Tracking of stock while in transit.

Hoping it will help you.

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11 Comments

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  1. ' MoazzaM '

    Hi

    Nicely presented. This is make to stock scenario. Right? Production order created w.r.t sale order but stock is posted in unrestricted stock not in Sale order stock. What if we wantstock to be posted in sale order stock just to make sure that this stock must be issued to this sale order only?

    Thank$

    (0) 
    1. Trend maker Post author

      Its Make to Order scenario and after production with reference to sales order system will automatically assign sales order in stock report as you can see in screen shot Stock 12.JPGand you can not dispatch that stock to any other order unless you release that stock from that order to unrestricted. (transfer stock to unrestricted or in quality depending on movement type)

      (0) 
      1. ' MoazzaM '

        Hi

        Thanks for this clarification. This is make to order scenario. I got it. How about make to stock scenario? In that case can we create production order automatically? Does it make sense?

        Thank$

        (0) 
  2. varun dev

    Hi,

    Very good presentation.

    Would like to ask 2 questions which I was not able to locate –

    1) Where is the exact control that we are conveying to the system to create production order once document is not blocked/released/incomplete/ once  requirements passed to MD04?

    Means  – How production order has generated? where is the control?

    Your statement :

    Sales order will release by using Tcode VA14L as in screen shot. VA14L 10.JPG

    Now again execute COOIS then you will see that production order has been created automatically with reference to sales order as shown in screen shot. COOIS after 11.JPG

    2) How system is considering movement type 687, while saving delivery in 1st step? I mean to say in schedule lines we have 687 and 601 right, then how system considering 687 instead of 601?

    Hope you got my doubts, if not please revert.

    (0) 
    1. Trend maker Post author

      Dear Varun,

      1)Production order is created automatically due to strategy 82 in material master data and transfer requirement from SD to PP as shown in screen shots Schedule line to MRP type 05.JPG.Assignmnt to requr. type to requ. class to item categ. 06.JPG

      2)For the movement type its due to business function MM_LOG_SIT, first system will take 687 for stock in transit and after POD system will do 601 and at that time system will reduce stock from inventory as you can seen in report MB5SIT screen shots.

      (0) 

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