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Make-to-Order Production – Finished Goods Sales and Final Assembly

The Make-to-Order process starts with a customer quotation and ends with the clearing of a customer account after a payment is received.

The process starts with the creation of a quote that includes a price and lead time estimate. Once the customer accepts the quote, a sales order is created that references the quote.  The billing plan containing multiple customer payments (including down payment) may be set up in the order.

The production process is triggered by a material requirement planning (MRP) run for the finished product and BoM components. Once the finished product is manufactured (and confirmations entered and components issued) and received into stock, the delivery and final billing occurs.

Optionally, you can set up an order BoM that contains the components required for the customer’s specific requirements.  A cost estimate can be generated based on an order-specific BoM.

Components can be preplanned using the Semi-finished Goods Planning and Assembly (1BM) scope item.

Key Process Steps Covered

  • Plan production in a make-to-order scenario, optionally with a sales order bill of material
  • Execute production specific to customer requirements and specification
  • Improve usability with intuitive confirmation of production operations
  • Use billing plan including down payments

Benefits

  • Reduce inventory costs by initiating production after you receive a customer order
  • Reduce time between initial customer inquiry to sales order receipt by streamlining the quote to order process
  • Enable Make-To-Order production
  • Reduce master data maintenance efforts by providing sales order BOM processing
  • Increase transparency into production and inventory costs by enabling sales-order-specific cost estimates
  • Execute production specific to customer requirements and specification
  • Improve usability with intuitive confirmation of production operations
  • Shorten order-to-cash cycle time by enabling flexible billing plan including down payments


Where is Make-to-Order Production – Finished Goods Sales and Final Assembly(BJE) being used?

This Scope item is used in the following way:

  • As a core function of Production Operations within Manufacturing Scope Item Group
  • As a core function of Production Planning within Manufacturing Scope Item Group

Process flow of Make-to-Order Production – Finished Goods Sales and Final Assembly (BJE)

Find below the process flow of the scope item Make-to-Order Production – Finished Goods Sales and Final Assembly as it is defined for release S4H-OP-2009.

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Ref: Manufacturing of S4H-OP-2009


Best Practices related to S/4HANA

*1) Yearly Updates are released per September of each year
*2) The Quarterly updates are released per Februari, May, August and November
Details of future releases can be found in the SAP Roadmap section of each product. Go to SAP Roadmap Product Finder.


Knowledge Center Scheer Nederland | The Process Experts

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