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Make-to-Order Production (Strategy 20): Sales Order Requirement, Order and Receipt into Sales Order Stock

Production triggered by one sales order item: MRP plans in that order's own segment, the production order is assigned to the sales order, and the finished goods are received into sales order stock (special stock E) so nobody else can use them.

Educational content. SAP behaviour varies by configuration and release. Spotted something off? Report it.

Digital twin

Docs
SAP DOCUMENTSVisualization of Make-to-Order Production (Strategy 20): Sales Order Requirement, Order and Receipt into Sales Order Stock. All information shown in the scene is also available in the caption and the panels next to it.
Demo data

01A sales order creates an order-specific requirement

Sales order 10000180/10 needs 10 EA of FG-2600. The requirement is tied to that item, not to anonymous stock.

Business scenario

Sales order 10000180 asks for 10 custom conveyor frames (FG-2600). Each frame needs 8 EA of RM-1000 and 10 hours on assembly line 1. Nothing is built until the order exists.

All companies, numbers and documents are fictional demo data.

Step-by-step flow

  1. 01

    A sales order creates an order-specific requirement open in twin

    Sales order 10000180/10 needs 10 EA of FG-2600. The requirement is tied to that item, not to anonymous stock.

    The product only makes sense for this customer, so planning keeps it separate from everything else.

  2. 02

    Plan for the sales order (MD50) open in twin

    MD50 plans the sales order segment: planned order 45800 for 10 EA, assigned to 10000180/10.

    MD04 shows this segment separately from the plant's anonymous stock.

  3. 03

    Convert and release open in twin

    Production order 1000010 inherits the account assignment to 10000180/10 and reserves 80 EA of RM-1000.

    That assignment decides where the output is received and how the costs are settled.

  4. 04

    Issue components (261) open in twin

    80 EA of RM-1000 from anonymous stock: 300 → 220.

    Only the finished product is order-specific in this strategy.

  5. 05

    Confirm the work open in twin

    10 frames built in 100 hours: ₹40,000 activity cost to the order.

    Conversion cost lands on the order.

  6. 06

    Where do the frames go? open in twin

    The 10 frames are finished. Where are they received?

    That is how the goods stay reserved for the customer they were built for.

  7. 07

    Anonymous stock for a custom product open in twin

    In free stock the custom frames could be sold to anyone, and the sales order's delivery would not find them.

    Free stock would break the link between the product and its order.

  8. 08

    Receive into sales order stock (101 E) open in twin

    FG-2600: sales order stock 10000180/10 +10 EA, valued ₹1,20,000.

    The SD delivery for this order item will consume exactly this stock.

  9. 09

    Settle the order open in twin

    Debits ₹1,20,000, credit ₹1,20,000: nothing to settle in this demo.

    With non-valuated sales order stock, the order would instead settle its full cost to the sales order item, where it meets the revenue — configuration dependent.

  10. 10

    Built for one customer open in twin

    Sales order → planned order → production order → 101 E. SD now delivers from this stock (see the make-to-order sale).

    Compare with make-to-stock, where production fills anonymous stock for whoever orders next.

SAP documents

Drag to pan · Ctrl + scroll to zoom

Stock impact

StepPlant / SLocStock typeMvTChange
Issue components (261)1000 / 0002Unrestricted use261−80 EA
Receive into sales order stock (101 E)1000 / 0001Sales order stock (E) · 10000180/10101+10 EA

Accounting impact

Components consumed by the make-to-order production order

Typical

Issue components (261)

  • Dr Consumption — order 1000010 (GBB/VBR)₹80,000
  • Cr Inventory — raw materials (BSX)₹80,000

Standard order consumption.

Activity allocation

Conceptual

Confirm the work

  • Dr Production order 1000010 — machine hours₹40,000
  • Cr Cost center CC-4300 — activity allocation₹40,000

Confirmed hours at the work center's activity rate.

Receipt into valuated sales order stock

Configuration dependent

Receive into sales order stock (101 E)

  • Dr Inventory — sales order stock (BSX)₹1,20,000
  • Cr Factory output — order 1000010 (GBB/AUF)₹1,20,000

With valuated sales order stock the receipt credits the order. The valuation price for sales order stock (e.g. from a sales-order cost estimate) is configuration dependent; here it equals actual cost, so no variance arises.

Typical conceptual flow. Actual G/L accounts and posting behaviour depend on material valuation, automatic account determination and system configuration.

Movement type

  • 261GI for orderReversal: 262
  • 101GR for order into sales order stock (E)Reversal: 102

Produces only against confirmed customer orders, keeping planning, stock and costs separate per sales order item.

Transactions & Fiori apps

  • MD50 — MRP — single-item, sales order
  • MD04 — Stock/Requirements List
  • CO40 — Convert Planned Order
  • MIGO — Goods Movements
  • CO11N — Confirmation
  • KO88 — Settlement
  • Manage Production OrdersAvailability depends on release and scope

Differences by SAP version

MD50 for sales-order planning; valuated or non-valuated sales order stock.

Configuration

  • Strategy group and requirement class

    Configuration dependent

    Decide make-to-order planning, valuation of sales order stock and settlement.

  • Valuation of sales order stock

    Configuration dependent

    Valuated (typical in S/4HANA) or non-valuated with settlement to the sales order.

Prerequisites

  • Strategy group 20 (or similar) on the material
  • Sales order item with a make-to-order requirement type
  • BOM, routing and production version

Master data

Material master (MRP 3)
Strategy group.
BOM and routing
Copied into the order as usual.

Organizational structure

  • Plant 1000
  • Work center ASSY-01

Tables

TableDescription
MSKASales order stock
AFPOOrder item with sales order assignment
PLAFPlanned order in the sales order segment

Integration

  • SDThe sales order item is the requirement and the receiver of the stock.
  • COCosts per order, optionally settled to the sales order item.

Common errors

  • “MRP plans the sales order in anonymous stock”

    Likely causes: Wrong strategy group; Requirement type not make-to-order

    Where to look: Material MRP 3 view · Sales order item requirement type

  • “Receipt goes to free stock”

    Likely causes: Production order not assigned to the sales order

    Where to look: Order header assignment tab

Troubleshooting

Something went wrong? Work through these checks in order. They are diagnostic questions, not configuration instructions — confirm changes with your system owner.

  1. CHECK 1

    Planning

    • Strategy group 20?
    • Requirement type on the order item?

  2. CHECK 2

    Receipt

    • Is the order assigned to the sales order?

Interview questions

  • What is planning strategy 20?

    Make-to-order production: no forecast; each sales order item creates its own requirement segment, MRP plans it individually, and the produced goods go to sales order stock (special stock E) for that item.

  • Why is the production order account-assigned to the sales order?

    So that its goods receipt goes into the sales order's stock and its costs can be tracked (and, with non-valuated stock, settled) per sales order item.

Quiz

Q1 · Multiple choice

Where does a make-to-order production order receive its output?

Q2 · Configuration reasoning

Which planning strategy is pure make-to-order?

References

  • SAP SE — SAP Help Portal: Make-to-Order Production (source)
  • SAP SE — SAP Help Portal: Planning Strategies (source)

Explanations are original. They summarize standard behaviour; always validate against your system's release and configuration.

Version history

VersionChange
1.0.0Initial version.