Collective Order 
Definition
A collective order is a logistical linkage of planned orders, production orders, or process orders across multiple manufacturing levels.
Use
Collective orders represent multilevel production structures for materials produced in-house in which the manufacturing order for the highest material in the structure automatically generates manufacturing orders for the semifinished products in the structure. The output quantity of the manufacturing orders for the semifinished products is the quantity required for the manufacture of the highest material.
You can analyze the costs for collective orders in the Product Cost Controlling Information System in special reports. A hierarchy report can be accessed for the collective order, which shows the sum of the planned costs, target costs, and actual costs for each level of the collective order. You can access detailed reports on individual orders.
Structure
Collective orders can consist of planned orders or manufacturing orders (production orders or process orders).
A collective order consists of the following:
A leading order
The leading order is the order at the highest level of the collective order. It is created to manufacture the finished product.
Dependent orders
All orders below the leading order are dependent orders. The system automatically creates the dependent orders for the leading order. Dependent orders can be subordinate to each other on multiple levels of the collective order.
Changes to higher-level orders (such as a changed order quantity or release of the order) are immediately reflected in all dependent orders when the order is saved.
There are two ways of processing collective orders in Cost Object Controlling :
Collective orders with automatic goods movements
All orders in the collective order are processed in Cost Object Controlling in the same way as the orders that are not in the collective order. Goods movements take place between the levels of the collective order. This means that a goods receipt is automatically posted to the higher-level production order when the lower-level manufacturing orders are delivered to stock.
SAP recommends the use of collective orders with automatic goods movements.
Collective orders without automatic goods movements
No goods movements take place between the levels of the collective order. No MM documents are generated. In make-to-order production and with a valuated sales order or project stock, the orders are credited the planned costs at the time of final confirmation of the operation. The higher-level order in each case is debited with the planned costs at the same time. The difference between the debit and credit is settled to the higher-level order at the end of the period. Only the leading order delivers to stock and settles to inventory (receiver = material).
In sales-order-related production and in engineer-to-order with a nonvaluated stock, the leading order is not credited at the time of the goods receipt. The full cost is passed to the sales order item or WBS element when you settle.
Integration
The system generates a collective order when you create a production order for a material whose components have a special procurement key for direct production in the MRP view of their master record.
Example
Suppose you create a production order for a finished product whose BOM contains materials for which a corresponding special procurement type (such as 52 for direct production/collective order) is defined. The system automatically generates further production orders for production of these materials.
The collective order accesses a wide range of master data and transaction data in Production Planning (PP), Materials Management (MM) and Controlling (CO). The work in process calculated in Product Cost Controlling (CO-PC) can be transferred to Financial Accounting (FI) and Profit Center Accounting (EC-PCA). The profit center is derived from the master record of the material in the Sales: General/Plant Data view and stored as a default value in the order.
The variances can be transferred to FI, EC-PCA, and Profitability Analysis (CO-PA).
Note
If you are using collective orders without automatic goods movements, you cannot calculate variances and therefore you cannot settle variances to CO-PA.
See also:
For information on collective orders with automatic goods movements, refer to the following sections:
Collective Orders with Automatic Goods Movements
Collective Orders with Automatic Goods Movements: Scenario
For information on collective orders without automatic goods movements, refer to the following sections:
Collective Orders Without Automatic Goods Movements
Collective Orders Without Automatic Goods Movements: Scenario
Displaying a Settlement Hierarchy
For information on displaying the costs of a collective order in the Product Cost Controlling Information System refer to the following section in the documentation Product Cost Controlling Information System :
Special Requirements with Collective Orders in the information system
For more information on collective orders, refer to the document LO Production Orders .
You can use collective orders in the following production environments:
Make-to-stock production
Sales-order-related production
For general information on Cost Object Controlling with make-to-stock production, refer to the following section:
Cost Object Controlling : Make-to-Stock Production
For general information on Cost Object Controlling with sales-order-related production, refer to the following sections:
Cost Object Controlling: Mass Production on the Basis of Sales Orders
Cost Object Controlling: Complex Make-to-Order Production
For information on Product Cost by Order with production orders and process orders, refer to the following document:
For information on Product Cost by Sales Order , refer to the following document:
For information on selected logistical processing methods, see the following section: