SAP Make-to-Stock (MTS) Process Flow

Prepared by Harshvrdhan Rathore

From the demand forecast to customer payment and month-end variance settlement — every department's role in one swimlane diagram. Goods are made before any customer orders, and orders are served from warehouse stock. Solid boxes are the main flow (number = sequence); dashed boxes are supporting or parallel activities. Hover over a box to see details.

Strategy 10 / 40 Requirement type LSF / VSF Item category TAN Stock general warehouse stock Driven by forecast

Main process step (number = order) Supporting / master data activity Document flow Input / support

Department-wise role

Step-by-step flow

#	Department	Activity	What happens	Output

Key MTS configuration points

Planning strategy 10 vs 4010 = net requirements planning: sales orders do not use up the forecast; it is reduced at goods issue. 40 = planning with final assembly: incoming sales orders use up the forecast.

Requirement type LSF / VSFLSF is the planned requirement type for strategy 10, VSF for strategy 40. Check the client's requirement type settings before go-live.

Item category TANStandard sales order item, delivered from general stock. Schedule line CP passes the requirement to MRP.

No account assignmentRequisitions and POs from MRP are for stock — no customer or sales order link. Goods receipt posts to valuated unrestricted stock.

Movement types101 (goods receipt from PO or production order), 261 (issue to order), 601 (goods issue for delivery) — all on general stock, no special stock indicator.

CostingFinished goods are valued at standard price. Production order variances (actual vs standard) are settled at month-end; margins show in profitability analysis at billing.

Note: Several Admin and HR activities (gate entry, shift roster) run outside standard SAP or in custom developments — adjust them to the client's landscape. MTS customers usually order straight from a price list, so the inquiry and quotation steps of MTO are left out. India-specific steps (e-invoice IRN, e-way bill, India payroll) are shown for GST compliance.