Engineer To Order

In our company-wide operations, we use SAP 4.7 for everything from order entry through manufacturing. Within our Custom Products department, the typical process steps are shown below:
1.     Sales Order Entry
2.     System design
A.     create BOM
B.     create Routings
3.     System Costed
4.     Planning SAP entries and component procurement
5.     Manufacturing
6.     Test
7.     Shipment and confirmation
The issues we encounter using this Standard production process within a Custom System Engineer to Order atmosphere are:
1.Best guess estimates are used for assembly and routing times
2.Addition of components made during changes in order scope appear as variances
3.Accurate productivity and absorption metrics due to the routing estimates
Ive read some white papers on using either different process steps or modules for Engineer-to-Order application (example)
     How to Make Engineer-to-Order Products More Efficiently Webcast -- Real World Examples from Schumacher Elevator Company
A process step as simple as rolling up costs after the order, and placing actual assembly and test times to routings may create more accurate productivity and absorption metrics, but production orders cannot be created without a completely costed system.
My question:
Can you provide some information on how to use SAP more efficiently in an Engineer-to-Order atmosphere?.

Hello,
Manufacturing environment in which complex production activities under essentially one-off conditions are undertaken for a specific customer. The production structures are managed using a work breakdown structure (WBS). At this level, the following planning steps for the project are carried out: Budget Management, Revenue Planning, Finance Planning, and Cost Planning.
The production processes are managed using a network. The dates, resources, and associated costs are planned at this level.
Hope this helps!
Payam
P.S. Resource: SAP Library - Glossary

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How to identify difference between Configure To Order (CTO) and Engineer To Order (ETO) items

Hi All,
We are working on Oracle Database 10g
We have to develop a code which involves Configure To Order (CTO) and Engineer To Order (ETO) items.
Can anyone advise is there any table and the corresponding column in the database which will help identify if an item is a CTO or ETO.
Regards,
Shruti

Shruti,
Have you checked eTRM website? -- http://etrm.oracle.com
Please also see (How To Find the VIEW or TABLE That Populates a Form So That a 'Custom Report' Can Be Created Using Same VIEW or TABLE (Doc ID 604772.1)).
Thanks,
Hussein

Engineer to Order Scenario-Target Costs and Stock Valuation

I have got a query pertaining to Engineer to Order Scenario. A production order has been created with WBS element as the account assignment .Its a valuated project stock scenario, with configurable material. As per SAP standard behaviour and my limited knowledge, the Goods Receipt for FERT/HALB happens according to either of the four strategies:
     Standard Price ( if there exists one)
     Customer Exit COPCP002
     Sales Order Cost Estimate
     Preliminary Order Cost Estimate for prod order
However ,I have come across a case where although a preliminary order cost estimate exists for the production order, the system is not able to determine target costs. As a result the entire variance is posted as remaining variance at the time doing a variance calculation on the production order. Moreover at the time of Goods Receipt for FERT material,the system passses an entry Price diff A/c -Debit to Cost of Production, instead of debiting Inventory and crediting cost of production(Price Control is S, no standard price exists for the material)
Thus my query is :
1) In case of Engineer to Order Valuated Stock Scenario where prod order is created with reference to WBS element, how is the standard price (or target costs for version 0) determined
2) Under what situation at the time of goods receipt ,will an entry " Price diff A/c Dr & cost of production-Credit will be posted, instead of Inventory A/c being debited?
Awaiting a reply
-Regards
Amit Kulkarni

Hi Amit
the easy answer first: The standard price is just taken out of the material segment without WBS assignment. That means if you maintain a standard price in the accounting view of the material master for the material number + plant that will be the fallback to be used. That will at least reuslt in a inventory posting, instead of pure price differences (against a price of zero)
Why your production order cost estimate could not be derived I cannot say. But he first startegy will be to search for the cost estimate to the WBS. Is there not something in the project system to perform a project costing and save it? in that case that will be searched and used for the order target cost and inventory posting.
best regards,
                  Udo

Standard or Suggestions for Engineer-to-Order Production Order Paperwork?

Hello all,
I am a business user in charge of production scheduling for a engineer-to-order / make-to-order manufacturer. We print paper production orders and use these to drive manufacturing in the factory.
Can anyone point me to information about best practices or suggestions for the production order paperwork? Like, what information should be on it, and what the format should look like, etc?
Right now we just have the operations, the produced material number, the confirmation numbers, and the production order header dates.
Thanks for any advice!
Timothy

Hi Timothy,
Printing of shop floor papers varies from client to client. It depends mainly on ground user requirement on what information he want to see. Users now are refering to standard tcode COOIS to check all the related informations.
Some fields which are most required to users are as given below. Format should be operation wise information if each operation is performed individually by different users.
Order Number
Sales Order Number
WBS Element
Material Number and its description
Order Quantity
Order Start date and Finish date
Operation Number
Operation Quantity
Operation Text
Tools details if any PRT is linked
Confirmation Number
Reservation Number/Item number if materials are linked to the operation
Thanks & Regards,
Ramagiri

Sales order costing- engineer to order production

hi
we have a scenario where the production is started based on the sales order. The product is not standard product, for every sales order the product changes i.e. the material code should be created along with the sales order at the same point.
1. Bom is not available for all collective requiremnts at the time of sales order creation therefore the sales order costestimate calculated on the same day of sales order creation does not give the true picture
2. the chance is that the product that may be produced for the sales order may be after 6 months also, hence the production people are not ready to create bom for the sales order related product
my question is can we suggest sales order costing in this scenario.
krishna

Hello Krishna
In this case, I think you should suggest for sales order costing with variant configuration since the product is not standard and changes for every sales order. The sales order BOM needs to be created and a cost estimate should be taken. If the details are not available then the sales people should edit the sales order through VA02 later and rerun the cost estimate. After the BOM is finalised the production process may start.

COPA document in ETO (Engineer to Order) Scenario with milestone billing

Hi All
I have some issue in COPA document generation in ETO Scenario.
In ETO scenario, we have following important points
--- Milestone billing (30 % downpayment, 60% on shipping and remaining 10% with closing invoice) in the Billing plan.
--- We have dropship ment kind of scenario where the Purchase requisition is created while creation of Sales order.
--- While GR for PO whill be statistical and we will be booking COGS in GR
We have an issue in COPA document while billing. The quantity field is not getting updated.
Please help.
Regards
Neeraj Bhardwaj

Hi,
Is this the same functionality as Revenue Recognition in SD ? In that case please refer note note 619498.
regards
Waman

Settlement of Sale Order issue.

Dear friends
I am getting the following error while settling the Sale Order in VA88.
Please guide me in this issue, how to handle?
There are no accrued amounts; settlement is not possible.
Message no. KD256
Diagnosis
The sender has a results analysis key, but no accrued values.
Either the accrual was not yet started for the sender, or the values to be settled from the accrual equal zero.
Note
Actual costs are only settled once the sender is technically completed or finally delivered.
This applies to
Projects that cannot carry revenues
In Service Management for sales order production to the indicator (Calculate WIP for orders in sales order production) set in the accrual version for
Production orders
Internal orders with no revenues
Orders with no revenues
In Service Management for engineer-to-order production to the indicator (Calculate WIP for orders in engineer-to-order production ) set in the accrual version for
Internal orders with no revenues
Orders with no revenues
In Service Management to the indicator (Calculate WIP for internal and service orders with no revenues) set in the accrual version for
Internal orders with no revenues
Orders with no revenues
To the indicator (Calculate WIP for production orders without settlement to material) set in the accrual version for
Production orders without settlement to material
Procedure
1. If necessary, start the accrual calculation for the sender
2. Restart settlement

Now I am getting another error.
Complete PA transfer structure ZR
Message no. KD514
Diagnosis
There is no value field assignment for cost element 911400 / *_variance category COSR_* in PA transfer structure ZR, or
PA transfer structure ZR has no assignments, or
No "Origin" is maintained for the assignments in PA transfer structure ZR (cost element group and, if applicable, variance category)
When I see the Variance Category I didnt find any Variance Category COSR?
What could be the reason.
Thanks in advance
Kiran

What is order management?

what is order management?
is it a general term used for OTC cycle in SD or something else??
<REMOVED>

Hi
Below are details of Sales Order Management
Internet Sales
SAP Internet Sales (R/3 Edition) provides an e-commerce platform that enables SAP users to rapidly turn the Internet into a profitable sales and interaction channel. Internet Sales (R/3 Edition) offers everything customers need to sell products over the Internet: catalog browsing, product search, shopping basket, check-out, saving and retrieving shopping baskets, order status, and order history.
Field Sales
Mobile Sales for Handheld comprises a broad range of business applications to be processed offline on a mobile device, e.g., review customer information, take sales order via barcode scanning, create and/or modify sales orders, search for sales orders, and view a list of all materials.
Quotation and Order Management
Allows you to create and process orders, including pricing and scheduling order for fulfillment. SAP ERP supports many process variants, for example:
     Cash sales
     Ship-to-order
     Make-to-order
     Engineer-to-order
     Empties
     Batch processing
     Serial number processing
     Payment card processing
     Third-party delivery processing
     Complaint handling
     Returns
Inquiries
Allows you to create and process customer requests.
Quotations
Allows you to create and process quotations.
Follow-Up Order
Creates an order as follow-up document to the quotation. Copies the data from the quotation into the order and creates two transaction documents, quotation and order.
Automatic Partner Determination
Allows you to automatically determine the partners involved in the sales transaction, for example:
     Ship-to-party
     Bill-to-party
     Payer
     Contact person
     Employee responsible
Automatic Text Handling
Allows you to determine and maintain texts on header and item level.
Pricing & Tax
Allows you to automatically determine the different kinds of conditions, such as product-, customer- and contract- specific prices, free goods, surcharges, discharges, freights, taxes, etc.
Flexible Price Calculation:
Highly flexible engine to determine prices based on whatever criteria one might think of. (This needs to be part of the database.)
Price List:
Customer-specific price lists can be generated.
Tax calculation within SAP ERP allows you to calculate transaction taxes, such as VAT in Europe. For complex requirements regarding tax determination in the United States, third-party software can be integrated.
Payment Card Processing
Works with payment cards, such as credit cards. Copies payment card information from customer master data in orders and other sales documents.
Credit Management and Credit Check
Limits financial risks by carrying out credit checks that can influence transaction processing and setting up a workflow connection to notify responsible.
Credit check evaluates a transaction based on the credit standing of the payer in financial accounting.
Product Listing & Exclusion
Displays a list of products a specific customer is allowed or not allowed to buy.
Product Substitution
Enables the automatic substitution of products in sales documents during sales order processing according to flexible, predefined rules.
Free Goods
Offers free items on the sale of certain other items or takes money off a particular sale to a customer.
Minimum Order Quantity Check
Checks the product level automatically to determine whether a minimum order quantity has been reached.
Document Flow
Provides interlinkages of preceding and subsequent documents for a selected transaction (for example, production orders, deliveries, invoices, and complaints).
Regards
Ramesh

Error message while creating production order with KMAT material strategy25

Hi PP Gurus I am running variant configuration cycle...Strategy 25, Custermer Req KEK (KMAT Matrl)
Sales order & MRP Picked the components correctly as per the dependencies
written. So Planned order generated against sale order.
When I tried to convert planned order to Production order...I am getting the
below error message..
Error Message:
You cannot make an assignment to make-to-order stock Message no. CO684
Diagnosis The component cannot be allocated to an individual stock because
make-to-order production and engineer-to-order production cannot be executed
with this order.
A possible cause is that you are trying to create an order with reference to a
sales-order/project, where an account assignment to a sales order/project is not
allowed in the settlement profile that is assigned to the chosen order type.
This is inconsistant.
System response The following responses are possible:
Order processing is cancelled.
The system resets the special stock indicator back to the original value.
Procedure Choose another order type.
I used order type with SD1 as settelement profile.
OVZG: default 046, settlement profile = SD1
OPJH: Settlement profile = SD1
Plz through some light on this if u have worked on Variant Configuration/MTO
settlements.
Question:
1) Is creation of production order with KMAT material supported by SAP?
2) If yes, why the above error occurs?
Waiting for Ur reply
With Best Regards

Dear R.Brahmankar,
I have check on the note, but it is not relevant to ecc6. The current system default setting is :
Standrad setting for reqt class 046
Special Stock E
Acct Assgt Cat. M
Valuation M
Settlmt Profile SD1
However if I change the Acct Assgt Cat. from M to E. It resolve the problem. I would like to know is this the right solution?
Config in Acct Assgt M
Consumption Posting = E
Config in Acct Assgt E
Consumption Posting = ' '
In F1 key of Consumption Posting field it shown following:
To flag the sales order item as cost- and revenue-carrying, enter an "E" (settlement via sales order).
If you do not wish to flag the sales order item as cost- and revenue-carrying, do not enter anything.
Dependencies
If you are working with nonvaluated sales order stock, always flag the sales order item as cost- and revenue-carrying.
If you are working with valuated sales order stock:
In the case of complex make-to-order production, flag the sales order item as cost- and revenue-carrying
In the case of sales-order-related mass production, do not flag the sales order item as cost- and revenue-carrying
Should we change to E?
Regards,
Ong

Error Message while cretaing a Process Order

Hi all,
While trying to created a Process order I am getting this message.
You cannot make an assignment to make-to-order stock
Message no. CO684
Diagnosis
The component cannot be allocated to an individual stock because make-to-order production and engineer-to-order production cannot be executed with this order.
A possible cause is that you are trying to create an order with reference to a sales-order/project, where an account assignment to a sales order/project is not allowed in the settlement profile that is assigned to the chosen order type. This is inconsistant.
Please advice.

Dear,
Go to t-code OKKP and clicking sales order check box First enter into OKKP t-code then select your the controlling area, then select activate component controlling indicator double click on it ., then you will found sales order check box.
In addition to that please check these Note 307059 and Note 317715 and 432109, 861670.
Please try and come back.
Regards,
R.Brahmankar

Error in Settlement production order

Hi,
I am facing follow error when try to settled production order in KO88.
There are no accrued amounts; settlement is not possible
Message no. KD256
Diagnosis
The sender has a results analysis key, but no accrued values.
Either the accrual was not yet started for the sender, or the values to be settled from the accrual equal zero.
Note
Actual costs are only settled once the sender is technically completed or finally delivered.
This applies to
Projects that cannot carry revenues
In Service Management for sales order production to the indicator (Calculate WIP for orders in sales order production) set in the accrual version for
Production orders
Internal orders with no revenues
Orders with no revenues
In Service Management for engineer-to-order production to the indicator (Calculate WIP for orders in engineer-to-order production ) set in the accrual version for
Internal orders with no revenues
Orders with no revenues
In Service Management to the indicator (Calculate WIP for internal and service orders with no revenues) set in the accrual version for
Internal orders with no revenues
Orders with no revenues
To the indicator (Calculate WIP for production orders without settlement to material) set in the accrual version for
Production orders without settlement to material
Procedure
1. If necessary, start the accrual calculation for the sender
2. Restart settlement
Raja.

Hi AP,
First of all thanks for you are paying continue attention on my thread.
I have checked in production order that goods are issued against the production orders and costs are captured.
When I run KKAX,facing following error.Hope you can solve this.
There are values for cost element 50200000 that are not assigned to any line ID
Message no. KJ161
Diagnosis
Not all values for the cost element are assigned to a line ID.
Procedure
Assign the cost element to a line ID. If you don't want to include the cost element in results analysis, assign it to a line ID of category N.
You can access a detailed list of unassigned cost elements as follows: Start results analysis in the individual processing mode (transaction KKA1, KKA2, or KKA3). Select the field Full log. Execute the function. On the next screen, choose Logs -> Parameter List in the menu. A list is generated. The unassigned values are shown at the end of the list.
If cost element "+++++++++" was shown in the message, this is because in the assignment of costs and revenues to line IDs, you have not used a cost element other than the full masking "+++++++++". In this case a presummarization eliminates the information on the cost element.
Raja.

Error while converting planned order to production order for config materia

Hi experts,
While converting a planned order to production order for a configurable material.I am getting the following error meassage. Message No.CO684,
"You cannot make an assignment to make-to-order stock"
( DiagnosisThe component cannot be allocated to an individual stock because make-to-order production and engineer-to-order production cannot be executed with this order.
A possible cause is that you are trying to create an order with reference to a sales-order/project, where an account assignment to a sales order/project is not allowed in the settlement profile that is assigned to the chosen order type. This is inconsistant.
System ResponseThe following responses are possible:
Order processing is cancelled.
The system resets the special stock indicator back to the original value.
Procedure
Choose another order type).
I have checked some of the threads related to this error. But no where there is any solution.Please tell me if there is any settings to make so as to work on this scenario.
Thanks,
Sham

Hi,
This will be a MTO scenario. Please check your requirement type,Requirement class and strategy type config along with your Item category and schedule line category from SD.
Also check your Production order type config and settlement profiles.
I mean to say that you need new production order type to be configured for specific above mentioned combination.
Are you working on a production system..?? is it the first time you are creating the order for this config material..??
Regards,

You cannot make an assignment to make-to-order stock - Message no. CO684

Hi,
During conversion of planned order to production order in variant configuration scenario I am getting following error message....
You cannot make an assignment to make-to-order stock
Message no. CO684
Diagnosis
The component cannot be allocated to an individual stock because make-to-order production and engineer-to-order production cannot be executed with this order.
A possible cause is that you are trying to create an order with reference to a sales-order/project, where an account assignment to a sales order/project is not allowed in the settlement profile that is assigned to the chosen order type. This is inconsistent.
System response
The following responses are possible:
Order processing is canceled.
The system resets the special stock indicator back to the original value.
Procedure
Choose another order type.
Any ideas or suggestions to correct this issue..
Pavan

Hi Pavan,
This is one of the most common problem comes during MTO execution.And the real problem is massage no itself because you will get the same massage no. for many reason and that's it becomes more difficult to find out root cause.
Check below threads and settings,
- Order type for MTO is not maintain in Production scheduling Profile.Go OPKP or CORY and maintain Order type for MTO to it.
- [Thread 1|Error Message while cretaing a Process Order;
- [Thread 2|Error in Variant Configuration CO684;
- [Thread 3|error information when covert plan order to production order;
- [Thread 4|You cannot make an assignment to make-to-order stock;
Regards,
Dhaval

Message " You cannot make an assignment to make-to-order stock"

Hi,
i'm trying to create a production order for a specific material, but I get this error message:
"The component cannot be allocated to an individual stock because make-to-order production and engineer-to-order production cannot be executed with this order.
A possible cause is that you are trying to create an order with reference to a sales-order/project, where an account assignment to a sales order/project is not allowed in the settlement profile that is assigned to the chosen order type. This is inconsistant."
I have checked the settlement profile and valid receivers: "G/L account" and "sales order" are set to 1 "Settlement Optional".
Which can be the problem?
Thanks in advance,
Luis.

Hi,
in the allocation structure assigned in the settlement rule, is there an assignment for receiver category "SDI" (Sales Order Item) maintained? If not thats the reason.
best regards, Christian

Error in make to order

Hi Experts,
I have created a sales order with order type OR, requirement type KE , Bom with usage for production, Work center, Routing.
The material with item category Norm.I did MRP run in MD50.
while converting the Planned order into production order it giving error message"You cannot make an assignment to make-to-order stock
*Message no. CO684*
*Diagnosis*
*The component cannot be allocated to an individual stock because make-to-order production and engineer-to-order production cannot be executed with this order.*
*A possible cause is that you are trying to create an order with reference to a sales-order/project, where an account assignment to a sales order/project is not allowed in the settlement profile that is assigned to the chosen order type. This is inconsistant.*
*System Response*
*The following responses are possible:*
*Order processing is cancelled.*
*The system resets the special stock indicator back to the original value.*
*Procedure*
Choose another order type.
Then i have tried by changing the material item category to 0001 and while creating sale order i am unable to give more than qty 1"Only quantity 1 KG is allowed (Item 000010)
Configuration not possible for material CAR1981 : Reason 3 --> Help
Message no. V1360
Diagnosis
This may have been caused by one of the following:
1. The configuration profile for the material allows or requires the bill of materials to be exploded during order processing. However, a plant has not been specified in the item.
2. The configuration profile of the material allows or requires the bill of materials to be exploded during order processing, but the order quantity in the item must be greater than 0.
3. A configuration profile has not been maintained
or
A configuration is not permitted for the material
or
4. The configuration profile of the material allows or requires the bill ofmaterials to be exploded during order processing. However, the system could not determine a date because important data is missing from the item (see incompletion log).
Kindly help me to complete the make to order process
regards
s

Hi,
Maintain Stargy group 20 (Make to order) in MRP-3.
(Material mater)
Then run the MRP.
Hope you will get some idea
Thanks and regards
E.Rambabu

Engineer To Order

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