ETO & MTO

Hello,
What is the difference between Engineer To Order (ETO) & Make To Order (MTO) Process.
Regards,
Naveed Ansari.

Dear Naveed
We can call ETO as pre sales activity which involves exclusively for new product development, for which there will be a separate department to look after these sort of activities.
- study feasibility report
- Inform customer whether the development is feasible or not
- If feasible, give a quote with development cost
- If customer approved the quote, ask for tool cost
- Once tool cost is received, develop a die for tooling
- Indicate a tentative despatch plan of pilot samples
- Prepare drawing according to customer spec
- Submit samples for customer approval
- If approved, transfer the drawings to delivering plant
- If not approved, study customer comments and redespatch samples for approval
Whereas, in MTO scenario, you will be initiating productiion for your regular items.
thanks
G. Lakshmipathi

Similar Messages

ETO - MTO scenario

We have an ETO scenario where we have a Sales Order assigned to a WBS element. Project creates MRP for material procurement and assembly. So all the purchased components are account-assigned to the Project and the project creates Producttion Order for in-house production of FG.
At the month end should the variances on the production order be settled to the Material and COPA or should it go to the WBS (or should it be network)? The reason I am asking this is because when we run the s_alr_87013533 report for projects we do not see any production order related actual costs in the actual costs column of the report.
Please advise.
thanks
raj

Raj,
Yes. Process for ETO is similar to MTO. MTO has sales order as settlement received ,if production order is tied to Sales order.
In ETO , it is just replaced by NWA.....
In both scenario , if you decide to delink production order , then Settlement received should be material.
Hope it helps,
Jatin

ETO/MTO/MTS

Hey All
Can anyone tell me what the implications are of choosing a specific strategy group in create material (MRP 3). Does my choice here affect anything elsewhere in SAP?
(For example: Is it possible to put a product into inventory if it is registered as MTO or ETO?)
Thank you
Nina
Message was edited by:
Nina Henriksen

Strategy group will decide how the production planning is to be carried out.
How the sales orders to be treated, how the PIR to be treated, how the net qty to be produced - is calculated.
There are many stg groups which will give different results depending on the fields in MRP3 view.
To get the detailed idea please go through the link below
http://help.sap.com/saphelp_47x200/helpdata/en/cb/7f9b7043b711d189410000e829fbbd/frameset.htm

Costing relevancy in prod order

Hi.
We have a production order with all the components fixed to relevancy for
costing. sometimes we need to change the component at prod order level,
If we change the component, indicator / tick for "relevancy of costing" is disappering at general data of order.
we have ETO , MTO & MTS scenario in our plant.
Above mention problem is only for ETO order tyes prod orders.
Is there any setting/config for order types to select costing relevancy tick.
Thanks in advance.
Jeevan

Thanks for the reply, but costing relevancy is activated at operation level,
normal prod orders are getting created correctly, but when we change the componentin CO02 then costing relevancy is getting disapper.
Waiting for your reply.

ETO and MTO Product Costing

Hi All,
Im joining new project, which is basically Product costing related to ETO and MTO processes. As a design consultant, what would be my tasks in ETO and MTO process?
Any one have Design documents and Configuration documents related to ETO and MTO product costing, please forward to me.
I will assign points.
Thanks,
Rau

Hi,
Refer this:
http://help.sap.com/saphelp_46c/helpdata/en/51/5828e4a44c11d189bf0000e829fbbd/frameset.htm
Regards

ETO and MTO

Hi All,
I'm new to Engineer To Order (ETO) and Make To Order (MTO) Costing and my client like to implement ETO and MTO costing with Project Systems(PS) integration.
Any one worked on these proccess? and if you have Blue Print Documents, Business Process Documents and Configuration documents please forward to me.
[email protected]
Will assign points.
Thanks,
Rau

Hi,
Refer this:
http://help.sap.com/saphelp_46c/helpdata/en/51/5828e4a44c11d189bf0000e829fbbd/frameset.htm
Regards

HI All --MTO-MTS-ETO

Hi All
can any one explain
What is the procedure of MTO , MTS & ETO
Explain

Hi Prakash,
make to order:
it is a buisness scenario where the company produces goods according to the
needsand specifications of the customer,the product sold is not stored on the shelves.the product could be very similar but merely change a portion for differen t of its forms for different sales orders.the production cycle is trigered according to how the customer likes to see the product but not the company.
Make to order Scenario
1. Make-to-order production is a process in which a product is individually manufactured for a particular customer. In contrast to mass production for an unspecified market where a material is manufactured many times, in make-to-order production a material is created only once though the same or a similar production process might be repeated at a later time.
2. You can use make-to-order production: (a) For branches of industry or products where a small quantity of products with a large number of different characteristics are manufactured (b) When a product has to be assembled particularly for a sales order.
3. Stock keeping is not usually carried out for products that are made to order. In companies using make-to-order production, the demand program only determines the production area, in which various variant types are produced. Depending on how you track the costs associated with make-to-order production, there are two ways to process make-to-order items during sales order processing.
(a) Make to order using sales order
(b) Make to order using project system (not relevant for SD application)
4. for make to order production using the sales order, all costs and revenues involved for an order item are held collectively at that item. A particular rule is used that can be changed manually to transfer costs to profitability analysis.
5. make to order production is largely a production planning configuration. It is also controlled by the requirements type, which is determined by three things
the strategy group (MRP 3) in MMR
the MRP group (MRP1) in MMR
the item category and MRP type (MRP 1)
6. Make-to-order production is controlled by the requirements type. The requirements type is determined on the basis of the MRP group (MRP1) and the strategy group (MRP3) in the material master record. In addition, a plant must be assigned for make-to-order items in the sales order.
make to stock:
here the production is done irrespective of the customer orders, it is usually done on the basis of the sales forecasts not on the customer specifications, it is usually a push strategy,company produces the products and they are sold.
there is no customising of the product.
STO
Whenever you need to transfer the materials from one plant to another plant belonging to one company or belonging to two company code stock transfer order is raised by the delivering company.
STO:
Transfer of goods from one location to another location,it may be between plants within the same company code or in different company code's plants.
within the company code,bet plants, receiving plant will raise the STO in Supplying/issuing plant-ME21n,
Supplying plant will deliver the goods to receiving plants , then we need to pick n post the Goods Issue-VL02n, nw when we can observe that the STO qtty will be added into receiving plant and reduced in Delievering plant.
Configure Intercompany Stock Transport Order
Material should exist in both the plants (Delivering & Ordering),
Internal customer should be assaigned to the ordering plant ( MM -> Purchasing -> Purchase Order -> Setup stock transport order -> assign the internal customer to the ordering plant and assign the Sales area of the internal customer.
Assign its Sales area to the delivering plant
Assign the document type and Delivery type NB and NLCC
Assign the Supplying plant --> Receiving Plant --> NB
Take the delivering plant and assign the sales area.
Vendor master has to be created and assaign the supply source ( Delivering Plant).
Create a puchase order ME21N ---> Save
Delivery VL10 G ---> Calculation rule (appropriate) --> Assaign the purchase order number here nt. and execute.
Select the Delivery creation line and do the back ground process.
Start the log display and see the delivery document number by the documents button
Goto VL02N --> do picking and PGI --> Then do the MIGO with respect to the delivery docume
Billing (Intercompany pricing conditions should be set).
Assign points if useful

MTO, CTO, BTO, ETO difference

Make To Order
Configure To Order
Build To Order
Engineer To Order
Assemble To Order
I know Make To Order, worked on Variant Configuration..but don't know Configure to Order or any other 'To Orders'.
Can you please let know what is the difference or similarity..of all these scenarios.

In configure to order scenario, the customer is allowed to configure the product according to his or her requirement.
This involves variant configuration functionality of SAP R/3.
A good example will be how a customer purchases computer over the web where s/he can choose the different components (HD, RAM, Processor Speed and so on).
Please see the documentation of variant configuration (LO-VC) on help.sap.com for more details..
For BTO, Check this link..
fOR etO,

Mto /mts/eto -process difference

Hi
what is the diffrence between
1. make to order
2.make to stock
3. engineer to order
pl explain & what configuration setting differences does these process have

Please make a search in this forum as umpteen number of times, this topic was discussed.
Production will be initialized only after sale order creaation is Make To Order scenario.
Irrespective of sales requirement, materials will be produced is Make To Stock scenario
thanks
G. Lakshmipathi

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

MTO Sales order controlling with valuated stock

Hi,
In SAP MTO with sales order controlling (sales order is cost object) with valuated stock, how to make settlement rule set to sales order so that costs will flow from production order to sales order .
Can anybody advise me in this.
Regards
Rajesh A

Hi Rajesh,
I'm new to Engineer To Order (ETO) and Make To Order (MTO) Product Costing and my client like to implement ETO and MTO product costing with Project Systems(PS) integration.
If you worked on these proccess? please can you guide me how to design the process or could you please forward me design and configuration documents....my client is discrete manufacturing industry.
Thanks,
Rau

Steps for execution of valuated and unvaluated for MTO scenario

Hi,
Can any one provide the steps for execution of valuated and unvaluated for MTO scenario.
regards,
RAM

Hi,
Please find below the details about Valuated and non-valuated Sale Order scenarios:
SAP Scenario 1 - Valuated Sale Order Stock u2013 with Sale Order Controlling u2013 (MTO, ATO and ETO with VC)
1     Enquiry
2     Opportunity
3     Quotation (Creation and Approval). In case of ETO u2013 BPO is created and updated in quotation (condition type)
4     Creation of Sale Order
5     MRP Run u2013 Creation of Planned Order u2013 Creation of Production Order and Purchase Order
6     External Procurement u2013 Goods Receipt     ROH Inventory A/c Dr (BS)
     To GR/IR A/c Cr (P&L)
7     Material Consumption to Production Order     In FI:
ROH con. A/c Dr (P&L)
    To ROH Inventory A/c Cr (BS)
Same is the case with HALB
In CO:
Cost of Material is debited to Production Order
8     Activity Consumption to Production Order     No FI Posting
In CO:
Production Order is debited and cost center is credited with activity cost
9     Goods Receipt from Production Order     FG Inventory A/c Dr (BS)
   To COGM A/c Cr (P&L)
10     Delivery to customer     In-Transit A/c   Dr. (BS)
   To FG Inventory A/c Cr (BS)
11     Invoicing to customer     In FI:
Customer A/c Dr (BS)
   To Revenue A/c Cr (P&L)
COGS A/c   Dr (P&L)
    To In-Transit A/c Cr (BS)
In CO:
COGS and Revenue are posted to COPA
     Period end closing u2013 Production Order
12     Revaluation of activity prices     Production Order and Cost Center will be debited or credited as the case may be
13     Calculation of WIP     In FI:
WIP A/c Dr. (BS)
To Change in WIP A/c Cr (P&L)
If the Order is completed:
In FI:
Change in WIP A/c   Dr(P&L)
   To WIP A/c Cr (BS)
14     Calculation of Variances     Variances are Calculated on the Production Order. No FI or CO entries
15     Settlement to Sale Order     Production Order and Sales Order will get debited/credited depending on whether they are positive or negative variances
Period end closing u2013 Sale Order
16     Result analysis at Sale Order     Result Analysis run will identify the status of the sale order and will enable the postings to COPA at the time of settlement
17     Settlement of Sale Order
In FI:
Variances A/c Dr (P&L)
To COGS Account Cr (P&L)
(It would be otherwise if variances are positive)
In CO:
COGS, Revenue and Variances are settled to COPA
SAP Scenario 2 u2013 Non-valuated Sale Order Stock u2013 with Sale Order Controlling
Process Step     Business Process Flow     Value Flow u2013 FI/CO
1     Enquiry
2     Opportunity
3     Quotation (Creation and Approval)
4     Creation of Sale Order
5     MRP Run u2013 Creation of Planned Order u2013 Creation of Production Order and Purchase Order
6     External Procurement u2013 Goods Receipt     In FI:
Consumption A/c   Dr (P&L)
   To GR/IR A/c Cr (P&L)
In CO:
Material costs will directly get posted to Sale Order
7     Material Consumption to Production Order     Not applicable
8     Activity Consumption to Production Order     In FI:
No Entry
In CO:
Activity Costs are posted to Production Order
9     Goods Receipt from Production Order     Only Material Document for movement of goods will be there. The stock is neither valuated in CO nor in FI
10     Delivery to customer     Just goods movement from sale order stock to customer. No value postings in FI and CO
11     Invoicing to customer     In FI:
Customer A/c Dr (BS)
   To Revenue Cr (P&L)
In CO:
COGS and Revenue get posted to Sale Order
     Period end closing u2013 Production Order
12     Revaluation of activity prices     Prodn Order and Cost Center will be debited or credited as the case may be
13     Calculation of WIP     No WIP
14     Calculation of Variances     No Variances
15     Settlement of costs to Sale Order     All the costs accumulated in Production Order gets collected to Sale Order
16     Settlement of Variances     No Variances in Production Order
     Period end closing u2013 Sale Order
17     Result analysis at Sale Order     In FI
WIP A/c Dr. (BS)
To Change in WIP A/c Cr (P&L)
If the Order is completed:
Change in WIP A/c   Dr (P&L)
   To WIP A/c Cr (BS)
No CO postings will happen
18     Settlement of Sale Order     COGS, Revenue and other direct sale order related values will get posed to PA.
Best Regards
Surya

Error in MIGO of Subcon PO in MTO scn, not triggering Movement type 543/E

Dear Consultants,
I am trying to perform Goods receipt against a Subconctracting PO, in a MTO scenario. The components are linked to Sales Order (Special Stock - E). I have maintained '0' in the Individual / Coll requirements field in the MRP 4 view of the component.
So after creation of PO(Subcon), I am trying to perform MIGO - without issuing components to vendor as 541/E movement type for componenets is not allowed in standard.
While performing MIGO I am getting the error no stock available with vendor, the system is trying to trigger 543/O movement type whereas I am expecting 543/E to be triggered for the components.
I am also not able to perform 311/411 E movement type for the components as they are linked to WIP Batch.
Can anyone sujjest if there is a way by which the MIGO should trigger 543/E during MIGO.
Thanks
Arindam.

Hi
i donr think the movement type 543 E will trigger as the subcontracting only supports 543 O in standard , you need to do customizing as follows
Also check in SPRO > Logistics - General > Tax on Goods Movements > India > Business Transactions > Subcontracting > Maintain Movement Type Groups > here for Movement Type Group "0002", Movement Type "543 E" should be maintained.
just check following link for the subcontracting with sales order ,
[Sub Con 1|http://help.sap.com/saphelp_470/helpdata/en/4d/2b90b043ad11d189410000e829fbbd/content.htm]
[subcon 2|Subcontracting for project stock;

MTO e MTS no mesmo Material

Para entender todo o contexto, antes deem uma olhada na discussão abaixo.
Production in specific plant
O cenário da discussão anterior funcionou. Agora preciso saber se é possível configurarmos o material para se comportar da seguinte forma:
Obs.: para simplificar o cenário, vamos continuar com o foco em apenas dois centros: 1000 (que demanda) e 1800 (que produz).
- Para o material ABC, eu posso ter produção MTO (configurada) e também MTS (a partir de um ponto de reabastecimento). A produção MTO foi a que discutimos neste fórum e vimos que funcionou corretamente (o centro 1000 gera a demanda, e o centro 1800 produz, transferindo o estoque para o 1000 no final da produção). Gostaria de saber se tem como configurarmos esse material para disparar uma ordem planejada assim que o ponto de reabastecimento for atingido no centro 1000 (neste caso, a produção não é configurada, apesar de o material estar marcado como configurável).
Eu alterei o tipo de MRP do centro 1000 para VB e indiquei o ponto de reabastecimento. Porém quando rodei o MRP ele gerou a ordem planejada mas não deixou converter para ordem de produção. Foi gerada a exceção "52" (Não foi selecionada qq LisTéc)... como não foi selecionada uma LT, a ordem planejada não está com o campo "Código de conversão" marcado.
Obs.: o Grp.Estratégias do material é 20 (produção sob encomenda), mas esse grupo está configurado para aceitar a estratégia 40 também.
Saberiam me dizer o que pode estar errado?
Desde já, obrigado!
Willian.

Boa tarde Jean,
Não posso te passar mais detalhes no momento, mas o comportamento do programa é o esperado.
Solicite que a sua equipe fiscal leia a respeito no Guia Prático. A nota deve ser escriturada integralmente.
O que diferencia os itens (para contabilização do bloco M) neste caso é o CST.
Ex. (verifique os CSTs corretos com sua equipe fiscal):
Item 10 CST 98
Item 20 CST 54
Na escrituração dos registros F120/F130, ao escriturar o crédito relativo ao Item 10 você usa um CST de crédito (54, por exemplo).
Att.,
Charles

MTO...OH on sales order

Hi Experts,
Client is follwing MTO with non valuted sales order stock, after completion of production the production order is setteled to respective sales order.
EX: Production cost: 100 rs. has been setteled to sales order, on this 100 and other rs 20 rs directly posted to sales order. Here i want to caluculate OH 120 rs....i have asigned Costing sheet in Sales order, i am trying to caluculate OH, those values are not updating in the sales order level....
Please someone help....
Thanks,
Chandu

Hi,
You can settle to sales order with T.Code VA88.
Regarding OH, check the validity period and OH Rates and also credit details of respectiv oh Key.
Thanks.
S.Subbiah.

ETO & MTO

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