What is the purpose of collective orders?

Generic Parent » Generic 1 pt

What is the purpose of collective orders?
A . To manage production orders for an entire finished product on multiple levels
B . To combine order management of co-products and by-products with the main product
C . To post production costs on a cost collector instead of the production order
D . To post any component withdrawal as single backflush with order confirmation

Answer: A

Explanation:

Collective orders are used to represent multilevel production structures for materials produced in-house, where the manufacturing order for the highest material in the structure automatically generates manufacturing orders for the semifinished products in the structure. This allows for an integrated view of the production process and avoids unnecessary placements in storage or removals from storage between production levels. Collective orders can consist of planned orders, production orders, or process orders, and each order has its own order number. Collective orders can be processed with or without automatic goods movements, depending on the business scenario.

Reference: Collective Orders | SAP Help Portal, Collective Order | SAP Help Portal, Combined production order Vs Collective production order in SAP PP