Make-to-Order Production w/o Variant
Configuration
SAP Best Practices
Purpose, Benefits, and Key Process Steps
Purpose
 The business process encompasses all steps from the customer quotation to the delivery and billing of
the finished good and all dependent components in make-to-order production (MTO).
 Furthermore, the scenario is supported by the main cost object controlling functions required, such as
preliminary costing and period-end closing.
Benefits
 Quotation history
 Billing plan including down payment
 Change management in production
Key Process Steps
 Creation of the quotation header
 Creation of follow on quotation with reference to first quotation
 Customer’s request to change the quotation
 Create sales order with reference to accepted follow on quotation
 Customers credit limit is checked
 Order confirmation is sent to the customer and the production process is started
 Milestone Billing – down payment after order confirmation
 Customer requests a technical change
 Sales order and bill of material are recalculated
 Delivery and billing of the finished good
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Required SAP Applications and Company Roles
Required SAP Applications
 Enhancement package 6 for SAP ERP 6.0
Company Roles
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





Engineering Specialist
Production Planner
Sales Administrator
Billing Administrator
Accounts Receivable Accountant
Production Supervisor
Warehouse Clerk
Shop Floor Specialist
Product Cost Controller
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Detailed Process Description
Make-to-Order Production w/o Variant Configuration
 This scenario describes the entire process sequence for a standard sales process (Maketo-Order) with a customer.
The business process encompasses all steps from the customer quotation to the clearing
of a customer account after payment is received.
 Quotation processing is the first stage of the production process. The scenario starts with
an incoming request for quotation. A quotation is then created in the SAP system in
response to the customer's RFQ. The customer requests a change to the quotation and a
follow-on quotation is created. Finally, the customer accepts the second quotation and a
referenced sales order is created. An order confirmation is send to the customer and
production process is started.
Now, the customer requests a technical change. Sales order and bill of material are
therefore recalculated. The process ends with the delivery and the billing of the produced
goods.
 The process can be enhanced individually by executing optional steps, like serial number
creation, subcontracting, QM in production, credit management and plant- and company
closing.
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Process Flow Diagram
Event
Make-to-Order Production w/o Variant Configuration: Quotation Processing MTO
Request for
MTO
Quotation
Plan
Forecast
for
Finished
Good
(144)
Sales Administrator
Quotation
Processing
MTO
Create, Print
and Send
Sales
Quotation to
Customer
Quotation
accepted
?
Yes
Create FollowOn Quotation
and Send to
Customer
Print Order
Confirmation
No
Optional: Use
Easy DMS to
Assign
Customer
Specification to
Quotation
Reject
First
Quotation
MTO = Make-to-Order; DMS = Document Management System
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Process Flow Diagram
Need of Raw
Material for
Subassembly
Sales
Administrator
Event
Make-to-Order Production w/o Variant Configuration:
Parts Production for Subassembly
Billing
Administrator
Create Sales Order
with Reference to
Follow-on
Quotation and Print
Order Confirmation
Create Invoice,
Print Down
Payment Request
and Send to
Customer
Accounts
Receivable
Accountant
Production
Planner
Credit Issues
Have to be
Solved (108)
Post Customer
Down Payment
Procurement
of
Components
Using
Purchasing
Processing
(130)
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Evaluate Stock
Requirements
Situation
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Process Flow Diagram
Request for
Technical
Change (Finished
Good)
Planned Order Has
to be Converted to
Production Order
Create
Production
Order
(Subassembly)
Release
Production
Orders
Manufacturing
Production
Planner Event
Make-to-Order Production w/o Variant Configuration: Parts Production for Subassembly;
Technical Change for Finished Good, Procurement of Stock for Final Assembly
Shop
Production
Floor
Supervisor
Specialist
Material
Staging
Review Order
Confirmations
Post
Goods
Receipt
manually
Engineering
Specialist
Procurement of
Components Using
Purchasing Processing
Customer
Change
Request is
Considered
Sales
Product
Cost
Administration Controller
Buyer
Evaluate Stock
/
Requirements
Situation after
Technical
Change
Confirm
Production
Order
Recalculate
Customer
BOM
Change Order,
Print Order
Confirmation and
Send to Customer
(after Adding
Material)
Procurement
of Stock
Material w/o
QM
(130)
© 2013 SAP AG. All rights reserved.
Procurement
of Stock
Material with
QM (127)
Procurement &
Consumption
of Consigned
Inventory (139)
MM
Subcontracting
(138)
Repetitive
Manufacturing
(149)
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Process Flow Diagram
Planned Order
Has to be
Converted to
Production
Order
Convert
Planned Order
to Production
Order
Evaluate Stock
/
Requirements
Situation
Optional:
Printing Shop
Floor Papers
Release
Production
Orders
Sales
Billing
Adminsitr. Administrator
Accounts
Receivabl
e Acc.
© 2013 SAP AG. All rights reserved.
Optional:
Checking
Serial
Numbers in
Production
Order
Material
Staging
for
Assembly
Shop Floor
Specialist
Manu
facturing
Production
Event
Planner
Make-to-Order Production w/o Variant Configuration:
Final Assembly; Delivery Processing; Billing Processing
Confirm
Assembly
Activities
Pick
Components
(Picking List)
Issue
Goods
Manually
Instead of
Picking
List
Sales
Order
Processing
: Sales
from Stock
(109)
Post Goods
Receipt for
Production
Order with Serial
Number
Assignment
Delete Billing
Blocks
Create Invoice,
Print Payment
Request and
Send to
Customer
Create Invoice,
Print Closing
Payment
Request and
Send to
Customer
Post Milestone
Invoice
Post Closing
Invoice
End Process
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Legend
<Function>
Symbol
Description
Usage Comments
Band: Identifies a user role, such as Accounts
Payable Clerk or Sales Representative. This band
can also identify an organization unit or group,
rather than a specific role.
Role band contains
tasks common to that
role.
Symbol
Diagram
Connection
The other process flow symbols in this table go
into these rows. You have as many rows as
required to cover all of the roles in the scenario.
External
to SAP
External Events: Contains events that start or end
the scenario, or influence the course of events in
the scenario.
Business
Activity / Event
SubProcess
Reference
Process
Decision
Flow line (solid): Line indicates the normal sequence
of steps and direction of flow in the scenario.
Flow line (dashed): Line indicates flow to
infrequently-used or conditional tasks in a
scenario. Line can also lead to documents involved
in the process flow.
Connects two tasks in
a scenario process or
a non-step event
Business Activity / Event: Identifies an action that
either leads into or out of the scenario, or an
outside Process that happens during the scenario
Does not correspond
to a task step in the
document
Unit Process: Identifies a task that is covered in a
step-by-step manner in the scenario
Corresponds to a task
step in the document
To next / From last Diagram: Leads
to the next / previous page of the
Diagram
Flow chart continues on the next /
previous page
Hardcopy / Document: Identifies a
printed document, report, or form
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Financial Actuals: Indicates a
financial posting document
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Budget Planning: Indicates a
budget planning document
Does not correspond to a task
step in a document; instead, it is
used to reflect a document
generated by a task step; this
shape does not have any outgoing
flow lines
Manual Process: Covers a task
that is manually done
Does not generally correspond to
a task step in a document;
instead, it is used to reflect a task
that is manually performed, such
as unloading a truck in the
warehouse, which affects the
process flow.
Existing Version / Data: This block
covers data that feeds in from an
external process
Does not generally correspond to
a task step in a document;
instead, this shape reflects data
coming from an external source;
this step does not have any
incoming flow lines
System Pass / Fail Decision: This
block covers an automatic
decision made by the software
Does not generally correspond to
a task step in the document;
instead it is used to reflect an
automatic decision by the system
that is made after a step has been
executed.
Financial
Actuals
Process Reference: If the scenario references
another scenario in total, put the scenario number
and name here.
Corresponds to a task
step in the document
Sub-Process Reference: If the scenario references
another scenario in part, put the scenario number,
name, and the step numbers from that scenario
here
Corresponds to a task
step in the document
Process Decision: Identifies a decision / branching
point, signifying a choice to be made by the end
user. Lines represent different choices emerging
from different parts of the diamond.
Does not usually
correspond to a task
step in the document;
Reflects a choice to
be made after step
execution
© 2013 SAP AG. All rights reserved.
Usage Comments
Hardcopy /
Document
Budget
Planning
Unit Process
Process
Reference
Description
Manual
Process
Existing
Version /
Data
System
Pass/Fail
Decision
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