In sales-order-related production (make-to-order scenario), products are manufactured with reference to a sales order item.
Note
A sales order can comprise one or more items for one or several materials ordered. A sales order is created with reference to, amongst others, a customer, the ordered materials, and their quantity.
This means you manufacture products only when a customer places an order, often customizing the product to their specifications. For instance, you manufacture bikes with a company's logo (for example, the SAP logo) only when that company places an order. Such products are also called individual requirements materials. Again, the controlling focus is lot-based on the ordered product size. Costs are collected and analyzed for the specific lot the customer ordered. Thus, in sales-order-related production product cost by order is used.
