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Difference Between MTO and MTS - SAP MRP

MTS & MTO

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Sidharth Kumar
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394 views

Difference Between MTO and MTS - SAP MRP

MTS & MTO

Uploaded by

Sidharth Kumar
Copyright
© © All Rights Reserved
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Difference Between MTO and MTS - SAP MRP

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http://www.erpgreat.com/production/difference-between-mto-and-mts.htm

Difference Between MTO and MTS


By: Sankaran
The difference between MTO and MTS is
MTO--> Make to Order
Production is the process where the production order is triggered from a Sales Order. Ex: The Prod process
will start only after receiving the sales order from the customer. In this case the product could be customer
specific only (Variant)
MTS--> Make to Stock
MTS scenario can be accomplished by the following settings:
- Need to use strategy group 20 in material master MRP view-Strategy group 20 is assigned to strategy 20
Strategy 20 is assigned to Requirement type KE (Individual customer requirement)
- Requirement type KE is assigned to requirement class 040 (Indiv.cust.w/o cons.)
- Requirement class has all the parameters where we can define Production order type that will be used to
create th prod order. The above link needs to be established.
Also the MTS can be achieved using Sales Order schedule line category which will be assigned to
Requirement type/class. Item category is assigned to Reqtype/class and the Item category is maintained in
the material master.
You can use any of the above Config settings.
For MTO --> you just need to have all PP cycle settings in place nothing special needed as it is a plain PP
cycle.
1. Make-to-order production is a process in which a product is individually manufactured for a particular
customer. In contrast to mass production for an unspecified market where a material is manufactured many
times, in make-to-order production a material is created only once though the same or a similar production
process might be repeated at a later time.
2. You can use make-to-order production in two scenarios (a) For branches of industry or products where a small quantity of products with a large number of different
characteristics are manufactured (Variant Configuration).
(b) When a product has to be assembled particularly for a sales order (Individual Customer Requirement).
3. Stock keeping is not usually carried out for products that are made to order. In companies using
make-to-order production, the demand program only determines the production area, in which various
variant types are produced. Depending on how you track the costs associated with make-to-order production,
there are two ways to process make-to-order items during sales order processing.
(a) Make to order using sales order
(b) Make to order using project system (not relevant for SD application)
4. For make to order production using the sales order, all costs and revenues involved for an order item are
held collectively at that item. A particular rule is used that can be changed manually to transfer costs to
profitability analysis.
11/28/2016 7:47 PM

Difference Between MTO and MTS - SAP MRP

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http://www.erpgreat.com/production/difference-between-mto-and-mts.htm

5. Make to order production is largely a production planning configuration. It is also controlled by the
requirements type, which is determined by three things
the strategy group (MRP 3) in MMR
the MRP group (MRP1) in MMR
the item category and MRP type (MRP 1)
6. Make-to-order production is controlled by the requirements type. The requirements type is determined on
the basis of the MRP group (MRP1) and the strategy group (MRP3) in the material master record. In
addition, a plant must be assigned for make-to-order items in the sales order.
Get help for your SAP PP Problems
SAP PP Forum - Do you have a SAP PP Question?
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SAP PP Tips and Production Planning/Control Discussion Forum
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11/28/2016 7:47 PM

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