MTO 404 · AT THE KEYBOARD
Make to Order Configuration Workbench
Configure the mechanisms that make shared ERP planning and execution specific to one customer order, then prove logistics and economics remain traceable to that demand.
This workbench uses pure MTO / Strategy 20 as its teaching scenario: make this quantity for this customer order. P2M owns shared PP/MRP machinery; O2C owns shared sales-document mechanics; P2P owns purchasing mechanics.
MTO CONTROL MAP
One order creates its own supply identity
In the pure-MTO scenario, the order creates individual demand. Supply remains assigned to that demand through receipt, sales-order stock, delivery, and the selected economic model.
MTO CONFIGURATION WORKBENCH
Customer demand — what makes this order MTO?
A sales order becomes MTO demand only when its material, requirements determination, and SD transfer behavior produce the intended individual customer requirement.
Core controls
Strategy Group, MRP Group, Requirements Type, Requirements Class, Item Category, Schedule Line, plant, and Transfer of Requirements.
Decide and configure
- Use pure MTO / Strategy 20 as the default example: the customer order, not finished-product PIRs, drives the finished-product requirement.
- Treat requirements determination as context-dependent: material strategy and MRP group are central, while sales-document, item-category, schedule-line, plant, and transfer behavior must also be valid.
- Confirm the sales-order item creates the intended requirement before investigating MRP.
Material strategy/MRP group, item category, schedule line, plant, requirements determination, and transfer-of-requirements status.
MTO CONFIGURATION WORKBENCH
Requirement & stock segment — what belongs to this customer?
Individual demand keeps the relevant requirement, supply, and eligible sales-order stock separate from the normal common-stock pool. This is an assignment, not merely a generic reservation.
Core controls
Individual/Collective Requirement indicator, sales-order segment, sales-order stock, account assignment, and valuation model.
Decide and configure
- Choose individual versus collective treatment explicitly: individual means this customer’s demand; collective permits shared supply.
- Confirm the sales-order segment is created for the pure-MTO item and its demand/supply can be traced separately.
- Make the lower-level choice visible: a finished product can be individual/MTO while standard components remain collective/common stock where the design allows.
Individual/collective settings, sales-order item/segment, account assignment, special-stock assignment, and lower-level component treatment.
MTO CONFIGURATION WORKBENCH
Promise & planning — when can we promise it, and what supply is needed?
ATP answers the customer promise; MRP creates the supply response. A confirmed date is not the same thing as a planned or purchase proposal.
Core controls
ATP, Checking Group, Checking Rule, Scope of Check, sales-order requirement, MRP, procurement type, dates/calendars, and pegged supply proposal.
Decide and configure
- Set ATP scope and scheduling assumptions so the requested and confirmed quantities/dates are explainable.
- Run MRP for the sales-order segment and confirm it creates the expected production or purchase proposal with the customer reference.
- Keep pure-MTO quantity behavior simple: customer demand for 10 should create supply planned for that individual demand, subject to the approved planning and lot-size design.
ATP elements and scope, dates/calendars, sales-order segment, procurement type, proposal reference, lot-size design, and component availability.
MTO CONFIGURATION WORKBENCH
Execution — does the customer reference survive fulfilment?
Shared P2M production or P2P procurement must retain the MTO assignment through order conversion, goods receipt, sales-order stock, delivery, and PGI.
Core controls
Planned order or purchase proposal, production order or purchase order, goods receipt, sales-order stock, outbound delivery, PGI, and P2M/P2P shared controls.
Decide and configure
- Convert or procure the customer-referenced proposal without losing the assigned sales-order context.
- Receive finished output into the intended sales-order stock segment, then create delivery and PGI against that assigned stock.
- Use P2M for BOM, routing, work center, production version, order controls, confirmation, and costing detail; use P2P for procurement detail.
Reference/assignment on proposals and orders, receipt stock segment, delivery stock selection, PGI, and shared PP/P2P execution evidence.
MTO CONFIGURATION WORKBENCH
Economics & close — where do value, cost, and margin belong?
MTO valuation and controlling design decides where customer-specific inventory value and cost are held. Period-end behavior varies; do not force every MTO scenario through one results-analysis or settlement path.
Core controls
Valuated/nonvaluated sales-order stock, Requirements Class, account assignment, cost object, billing/revenue, results analysis, WIP, variance, settlement, and profitability where applicable.
Decide and configure
- Choose whether sales-order stock is valuated or nonvaluated with Finance and Controlling owners; this affects inventory postings and period-end treatment.
- Name the intended cost object—such as sales-order item, production order, or project/WBS in an approved project-oriented model—and the revenue/margin reconciliation point.
- Apply results analysis, WIP, variance, settlement, and profitability processing only where the selected model requires them.
Requirements class and valuation settings, account assignment, cost-object ownership, billing/revenue evidence, status, period-end process, results analysis, variance, and settlement rules.
Shared configuration boundary
P2M owns shared plant, MRP, BOM, routing, work center, production-order, capacity, and costing controls. O2C owns shared sales documents, item categories, schedule lines, delivery, and billing. P2P owns purchasing execution.
Use the linked guides for the common mechanism; use this page for the customer-specific assignment, segment, stock, promise, and economic result.
MTO technical anchors
Strategy / MRP GroupDetermine the planning context for the material.Requirements ClassControls relevant MTO requirement, valuation, and costing behavior.Individual / collectiveDefines whether lower-level demand remains customer-specific or shared.ATP / account assignmentExplain the promise and ownership boundary.END-TO-END MTO PROOF
Prove one pure-MTO customer scenario
Use one sales-order item and show that the same customer demand remains identifiable through promise, plan, execution, stock, delivery, and economics.
Proof sequence
Create sales order → verify requirements type/class and individual demand → inspect ATP confirmation → run MRP for the sales-order segment → create pegged supply → execute/procure → goods receipt into sales-order stock → delivery / PGI → reconcile value, cost, revenue, and applicable close.
Verify plant, requirement transfer, segment, proposal reference, individual/collective component behavior, receipt stock segment, delivery consumption, stock valuation, cost object, billing/revenue, and results analysis/variance/settlement where applicable.
Apply the customer-specific planning, execution, and economics model through design, integrated proof, deployment, and stabilization.