Costing in case of ETO Scenario

Hi Experts,
We have ETO scenario. There is sales order with reference to project  and absed on that production for In House Produced materials ( FG, HALB) and procurement for  some HALB, Raw Material will happen.PS<  moduel alongwith SD and PP are involevd in scenaio along with FICO and MM.
I am new to this area. I was looking for details of Costing of the project. How the production cost will be assigned to project?
How the execution of production happens..I mean whether we create production order or is there something else coming in picture in case of ETO ( Strategy -21) .
Thanks in advance.

Hi,
Presuming that your production is client order based. You have to use Sale order Costing and make sale order as cost object in the current scenario. As the Pipes are in different dimensions even Variant configuration will come into picture from Sales and Production Planning module.
When VC is used, there is a concept of Super BOM and Super routing in which all the relevant material and process required will be listed.
Specific coding will be written and assigned to the Master data in PP. When a specific requirement Sale order is create the required parameters are written on the Sale order VC screen.
In nut shell, from costing perspective you have to go with MTO scenario with Sale order costing. Then costing differs from Sale order to Sale order wherein there is not SCE updation to the FG material code.
Hope this trows some light on your doubts.
Thanks & Regards,
Ravi Kumar

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