Assembly Processing with Project System

An assembly Processing is the process in which Product or service is assembled on behalf of sales order. Raw materials are planned for this assembly. Receipt of the order initiates assembly of the customized product. This business process is called assembly processing.

Settings and Process Sequence for Make to Order 

Master Data required
1. Create a Standard WBS-

Tcode-CJ91

      For SD and PS integration you have to check SD/PS Assignment in Control Tab.

If there are two line items (referring to two networks) in a sales order no: 1563
with No SD/PS assignment - Project number generated will be T-1563

With SD/PS assignment ticked - there will two numbers generated T-1563-10, T-1563-20 for two line items (referring to two networks).

Only one root indicator is not set in the project profile to avoid any errors.

Assignment of Standard Milestone to Respective WBS/Network

Select the WBS item to which you want to attach Milestone than select WBS Element> Milestone Overview

Note: You require Standard Milestone to assign to WBS or Network Activity.

Creation of Standard Milestone:

Tcode: CN11

Here you have to enter Description and Usage of Milestone and Select Sales Document Date (Which is used for Billing Milestone)

2. Create a Standard Network

Tcode: CN01

3. Finished Product that is required to manufacture through assembly process.

Tcode: MM01

You have to select Industry type and Material Type which you want to produce. Than this will configure material according to sales area/ plant.

4. in T.code CN08 define the relation between Materail/Std WBS/Std Network/Network Type/Network Profile.

This assignment is very important for assembly processing because when you use material to be produce in sales order, base on that material a project is to be created with using this assignment. Otherwise this will gives pop up window to assign Std WBS and Std. network. End-user may select different WBS and Network. So to avoid this error we have to assign material to Std WBS & Std. network.

Settings required In SD Module

1. Define Requirement class with Network type as PS01 or PS04 and with account assignment cat as Q project make to order iif you want all operational as well as materials cost to be accounted at project level with assembly option as 2.

Tcode: OVZG (Requirement Class)

Assembly Type as 2 (Production order, network or service (static processing))

Order Type as PS04 (Networks for sales order)

Account Assignment as Q (Project make to Order).

Now we have to check Strategy Group as 85 (Assembly processing with Network/project)

Tcode: OPPT

Now check Strategy group assigned to Requirement type

Tcode: OPPS

in this Strategy please check Requirement type should be assigned as KMPN.

2. define the requirement type and assign the requirement class to requirement typw.

Tcode: OVZH

Note: standard settings available in SAP or we can define by our own also.

Check Requirement Class

Tcode: OVZG

3. Create a separate sales document type if required.

Tcode: VOV8

To maintain Item Category

Configuration Settings - Item Category 
If System not able to find the Requirement class based on the above two strategies it will tries to find out based on Item Category.
From Item category group maintained in the material master and sales document type entered in the sales order system determines item category.

Item category linked with requirement type

Requirement type is linked to requirement class.  
Tcode VOV7

Item Category Group

Tcode: SPRO

Path: SPRO> Sales & Distribution> Sales> sales document item> Item category Group

Item Category assignment

Tcode: VOV4

Copy Control Config (TCODE: VTFA)

Settings in PS
1. In PS if you want all the operational cost also to be accounted for at project level from planning onwards then set in t.code OPSV "order level updating" ensure check box for 10 and 20.

Settings in PP

I. Create BOM in T>code CS01
2. Creating Routing for the production operations
Tcode: CA01

Configuration Settings - MRP Group 
If System not able to find the Requirement class based on the above strategy it will tries to find out based on MRP Group.
If planning strategy is not maintained in the material master, system picks the same from MRP group, in the MRP group we have planning strategy and the above cycle is repeated to get the requirement class.
Tcode: OPPU

Note: For routing we need work center and activity types defined already. Cost for activity type in KP26. Not these activity costs related cost elements should be part of product costing for cost to flow in all reports as to know the cost of finished product.

Settings in MM

In material master in MRP view we need to set the MRP Group and strategy group relevant for assembly process. As Strategy will have requirement type.

Tcode: MM01

Item category group is important for selecting the item category in the sales order.
Strategy Group as 85 & MRP As PD (MRP)

1. Create a Inquiry in VA11
2. Create Quotation in VA21 with reference to Inquiry
3. Create a Sales order in VA01, while creating sales order, as soon as we assign the material component in SD line item a pop will come for entering std WBS, std Network, network profile. once we enter this at bottom we can see that scheduling is carried out. Note: if we define material/std WBS/std Network in CN08 then pop will not come. Now check for errors and save the sales order, at bottom we can see that project order is created. Note: Project number is same as sales order no:
4. in Billing plan tab at item level we can see the milestones for new project.
5. In Sales order we can see that billing lock is set against the milestones.
6. Now open the project in Cj20n and go to network we can see sales order no with line item no.
7. Now verify the mile stones in the project.
8 .check the requirement list in MD04 against the Finished product we can see that requirement is generated against project With respect to sales order.
9. Run MRP in MDBT/MD02/MD01, based on procurement type in MM , PR's and Planned order will generated. Note: ALL PR's and Planned Orders are account assigned to WBS.
10. Now do Pr-->PO-->GR>(ALL all accounted against project.
11. Convert Planned order to Production order--> release the order--> Goods issues against production order.
12. Confirm the Production order with respect routing operation one by one in CO11N.
13. in cost element reports at projects we can see the cost breakup for all production activities as well as for material.
14. Settle the production order.
15. conform all activities in Project.
16. Do billing in SD as when when mile stone reaches to post actual revenues.
17. run RA in KKA2 and save the RA results
18. Run settlement in CJ88
19. Set the status of Project as TECO and CLSD.