For manufacturing customer there is a need to quote and sell standard or configurable products. However, they also do make-to-order products. In this process they start with a dummy material / product that is used to capture the requirements and from then on developed into a quote specific sales BOM with costing.
The dummy material represents finished product to be quoted.
Existing SAP ERP Materials may be used to build the quote as components / sub line items.
Quote might get accepted or rejected thus not all dummy materials / products are to be created in SAP ERP. MX is built to have such capability to manage the dummy products, quotes with assemblies and if the quote gets accepted the follow-on process of moving the quote from MX to SAP ERP.
The first step of the follow-on process is to create the dummy material as an actual material in SAP ERP or / and MX. This guide is focusing on material creation in SAP ERP.
The second step in MTO process is to create a production bill of materials for the dummy material that was created in SAP ERP in step one. The bill of materials contains all the sub line items materials from the MX quote. These sub line materials already exist in ERP as standard materials.
Optional step is to also create material routing in SAP ERP. Material routing is the time and resources taken to produce the product. That is physical labour, machine and time spent on really building (or assembling) the material. MX provides steps in Internal Price Engine to compute material routing during quotation process, as the material routing adds up into the costing of the assembly.
The last step of the MTO process is the sales order creation. The sales order is created with the same sales specific data as the quote, with an option to only include the finished product created in first step above into the order.
Material Creation in SAP ERP
To launch this function, go to: Quote -> ERP Helpers -> Material and click on the listed material. the logic to identify which materials are allowed to be created is based on the flag in the product. Each product has a product type and the product types with flag isMaterialCreationRelevant true are included. Also, the product should not have an ERP id assigned as it is considered already created in SAP ERP.
All the data points related to material creation such as industry sector, plant, unit of measure, material group, item category and so on need to be maintained in both MX and SAP ERP system as master data in advance.
The mandatory data points can be different for each customer as it is based on the setup within the SAP ERP system.
Material number of newly created material is saved as ERP ID of the sales item in MX as a result of material creation process.
Below image shows the various data points required in material creation.
After material is created:
Newly created material in SAP ERP:
BOM Creation in SAP ERP
Next step for MTO process is to create bill of materials. SAP ERP supports several BOM types, however MX only supports creation of Production BOM in SAP ERP system.
isBOMCreationRelevant flag in product type enables MX to find materials in sub line item that need to be part of the BOM.
The process checks if the BOM is already created in SAP ERP and does not allow the BOM to be created again. It also checks whether all materials in the BOM are exist in SAP ERP system.
Before BOM creation:
BOM created in SAP ERP:
Routing Creation in SAP ERP
Material Routing is a list of operations or activities that need to be carried out during the production process of material. It also lists the order or sequence of operations which need to be carried out at work centres or machines. Sales Item with product type marked as isMaterialCreationRelevant is included in the process.
Work centres need to be maintained as master data in MX system. A work centre is an organizational unit that defines where and when a manufacturing operation can be performed. Routing calculations can be made to work together with internal price engine, a pricing step can be put that is routing relevant and it can calculate the required time taken in each work centre. Plant is the mandatory parameter for routing creation.
Input data preparation for routing:
Routing created in SAP ERP:
Sales Document Creation in SAP ERP
Sales Document creation happens after a quote is accepted in MX. To support this the Account of the quote must be available in SAP ERP and should have the Object ERP Id maintained in the MX. For prospect accounts, that are imported from Cloud for Customer or directly in MX, sales document creation is not supported.
Note that from a process definition point of view MX will not trigger a creation of Account in ERP. This is because there are several checks and balances (finance approval etc) that are usually taken before an account/prospect is created in ERP.
Once this is done the account need to be synced from SAP Cloud for Customer, so that the ERP Id is available for the prospect or manually added directly in MX. As a process, In Mind suggests triggering the ERP customer creation via C4C as MX only uses the customer data that is coming from C4C. Once the ERP ID is available in Cloud for Customer, the sales rep can trigger sync the Account again to MX.
Once the Account ERP ID is available in MX, Sales Order creation can be triggered, in addition out details need to be present as well and this includes: Sales Area information, Business partners etc. Once the Sales Order is created in SAP ERP, the quotation is locked in MX for any changes. From that point onwards, SAP is the owner of the sales document which depending on BAPI used could be a Quote or Order in ERP.
In sales order creation filters are also applied to products going into ERP Oder:
- Sales item products product type should be marked as isOrderCreationRelevant.
- The product should be allowed to be exported back to ERP
- The product should have ERP ID maintained
- Account ERP ID (Coming for SAP CFC).
- Material ERP ID.
- Sales Document Type (needed to control the type of sales order in ERP based on used selection).
- Purchase order number and requested date.
- Sales Area information: maintained on quote level and taken from SAP CFC. This includes Sales Org, Distribution Channel and Division.
- Pricing Date and Requested Date: Maintained on MX Quote.
MX can pass variant configuration to SAP ERP system if the use case uses SAP SSC in configuration.
MX uses the standard BAPI:
The first step is from quote click ERP Helpers -> ERP Sales Doc -> click Generate Sales Orders
As MX supports Sales Quote Split and creation of multiple orders the system determines how many sales orders to be generated and the sequence of the line items, together with split in header price conditions.
Input data preparation for Sales Order creation:
Select New Order and click Create button to send the order to SAP ERP.
For MTO process the newly created order can take only the material created in ERP because the rest of the information about that material is already in ERP.
Pricing Procedure Determination
To determine which pricing procedure will be picked in SAP ERP for given combination of sales area data in sales document, create Sales Order using transaction code VA01 and select sales area data. That displays sales document header data and find pricing procedure that is active in ERP.
Sales Order pricing procedure:
User can modify pricing procedure determination using transaction code V/07 in SAP ERP.
Reference Distribution Channel for Conditional Lookup
Price condition lookup in ERP is done using Sales Organization and Distribution Channel. Maintained conditions can be expanded to multiple Distribution Channels by defining a reference Distribution Channel.
Go to Customizing (SPRO) –> Sales and Distribution –> Master Data –> Define Common Distribution Channels, and maintain reference distribution channel for condition.