"Make to Order" Vs "Make to Stock" in sap fico

"Make to Order" Vs "Make to Stock"

Question: Hi,

In "Make to Order" Scenario -

a. Procurement made against a Sale order
b. Production and Goods delivery is made against Sale Order
c. In Settlement of Production Order Entries passed in between Production order and Sale Order
d. WIP / Variances -- not exist.

Scenario - What are the basic differences between " Make to Stock" and "Make to Order" Scenario .

Please explain me in detail.

Thanks,
PLV Prasad

Answer:
Make to stock ...going in inventory with MRP information....

Make to stock - Produce against an order

Regards

Answer:
Hi Guest,

Thanks allot.

Please tell me in Detail. So that I can visualize something.

Thanks,
PLV Prasad

Answer:
Again, SAP provides some excellent documentation that will guide you through MTO, MTS and all other possible scenarios.

Answer:
make to stock

Considere like a regular stock. You put a min / max in the master data. If your going under the minimum MRP schedule a production. The stock will be going in inventory after that

Make to order. You received an order from your customer for a specific product. You don't want to keep it in ibentory after that.

The production it's against the order from your customer