Specific master data needs to be set up for the sales-order-related production of bikes in The Bike Company. The necessary master data differs depending on the manufacturing order used.
The following master data needs to be set up if a production order is used as a cost object:
- Bill of Material (BOM)
- Routing
- Work Center
- Material Master Record
- Production Order
Note
In this course, master data is only briefly covered and the focus is specifically on the settings required for the make-to-order scenario.
For more detailed information on the necessary master data, make sure you have completed the learning journey: Introducing Product Cost Planning and Production Accounting in SAP S/4HANA.
The Bill of Materials (BOM) lists all material components that are required to manufacture the product. It can also contain materials that have their own BOMs.
The Routing describes the sequence of the operations required to manufacture a product.
A Work Center is an organizational unit where an operation is performed. A work center can be a machine, a person, a production line, or a group of workers. The work center is assigned to a plant and a cost center.
A Material Master Record contains all information necessary to manage a material.
A Production Order contains all information required for producing material in the quantity of the lot size.
In sales-order-related production, the production order is a cost object. A production order is created with reference to the respective sales order item, and therefore with reference to a material and the quantity to be produced.
In the production order, the settlement rule must specify: Settlement Type FUL (Full Settlement).
Several prerequisites must be met to use the valuated sales order stock.
In the Material Master Record, on the MRP 4 tab, the Individual/Coll. Req. indicator must be set to one of the following:
- Individual Requirements Only
- Individual and Collective Requirements
On the MRP 3 tab, a strategy group is assigned to the product, in which a requirement class for MTO is assigned.
For example, strategy group 20 with the requirement class S40.
An accounting view must have been created. In this view, a valuation class for sales order stock must be entered.
The mentioned master data is required when, for example, a bike is produced in sales-order-related production with a production order in The Bike Company.
The following master data needs to be set up if a process order is used as a cost object:
- Master Recipe
- Resource
- Material Master Record
- Process Order
A Master Recipe describes the production of materials in a production run. It specifies the resources required and the operations that need to be performed.
A Resource includes the means of production and the persons involved in a production process. A resource is assigned to a plant.
A Process Order contains all the information required for producing a batch of material.
In sales-order-related production, the process order is a cost object. A process order is created with reference to the respective sales order item and with reference to the material and quantity to be produced.
In the process order, the settlement rule must specify: settlement type FUL (Full Settlement).
Several prerequisites must be met to use the valuated sales order stock. These are the same entries in the material master as described in the section on master data for manufacturing orders.
The mentioned master data is required when, for example, paint is produced in sales-order-related production with a process order.
Note
In this course we will focus on the use of a production order in the MTO scenario in production accounting.