Sales order costing - MTO Scenario

Hi Experts,
I am working on SAP ECC 6.0 on a Make-to-order scenario.
I have created sales otder; run MRP for the sales order and converted the planned order to Production order and confirmed the production order.
But I don't know the period end processes of make to order scenario. Please answer my following queries:
Whether <b>WIP</b> will be calculated at Sales order level or individual production order level related to this sales order?
Whether <b>variances</b> are to be calculated at each production order level or at sale order level?
Which t-code should be used for calculation of variances if it is calaculated at sales order level? The production orders have TECO status.
Whether variances are to be settled at sales order level or each production order level?
Which Transfer Control should I use in Costong Variant "Sales Order KDN" or "Complete Transfer"?
Please also forward me some documents, if you have, which explains the whole step by step cycle from creation of sales order to settlement of sales order.
My email id is [email protected]
Request your help.
Thanks & Best Regards,
Bijay Kumar Deo

Hi Bijay
To add few more checks and points - please note the following
1) Whether WIP will be calculated at Sales order level or individual production order level related to this sales order?
A) You need to selected RA for sales order in WIP RA version to ensure WIP is calculated for production orders which are linked to sales order
2) Whether variances are to be calculated at each production order level or at sale order level?
A) This would depend on whether u r following valuated or Non Valuated sales order stocks / costing
If is is non valuated u cannot determine variances, actual costs of production order are settled to sales order item
If it is valuated sales order following sales order costing, you can transfer production varainces to sales order item
3) Create settlement profile having sales order as valid receiver and assign profile to production type created for the sales order - MTO scenario
4) Which Transfer Control should I use in Costong Variant "Sales Order KDN" or "Complete Transfer"?
4A) Suggested to have complete transfer as transfer control strategy
Hope the above clarifies. Please assign points if useful as a way to say thanks
Any more suggestions / corrections to above points for the above scenairo are appreciated from forum members

Similar Messages

How to Copy Cost Estimate from Quotation to Sales Order in MTO Scenario

Hi,
We are working on a MTO scenario- Sales order Costing with Valuated Stock.
And our case we are creating the Cost Estimate at the time of Quotation using PP qty structure. Now we wan to transfer the cost estimate to Sales Order as we don't want to recost the sales order.
Currenty it's transferring only the EK01 condition as total planned costs in Sales order but we want to see the itemization also.
Please suggest is there any way to transfer this cost estimate with itemization from Quotation to Sales Order.
Regards
venkat

Hi
As far as I know the CO esimate does not get copied from Quotation to Sales Order
You need to recost the SO again.. If your Qty Structure has not changed between Quotation to SO and your valuation variant is also the same - it would give the same result
br, Ajay M

Error While doing settlement for Sale Order in MTO scenario

Hi,
In MTO Scenario - when i try to settle Sales Order i am getting the below error. Even i have maintained the settlement cost element for PSG in allocation structure A1.
Kindly help me
Define a settlement cost element for receiver type PSG
Message no. KD506
Diagnosis
In allocation structure A1 (controlling area BP01), you did not define which cost element should be used when settling costs/revenues of the sender. Nor did you define receiver type PSG.
Procedure
Assign a different allocation structure to the settlement sender (-> Master data -> Settlement rule -> Goto -> Settlement parameters), or maintain allocation structure A1.
Thanks
Kishore

Hi
Please check your allocation structure , it looks that settlement cost element that you have assigned in the allocation strcuture is not having correct cost element category.
Go to Allocation structure configuration (OKO6) and check your allocation structure A1.
check settlement cost elements is it by cost element or you have assigned separate cost element for settlement.
if you wants to settle with same cost element select By cost element.
if you wants to settle with different cost element create a cost element and assign settlement cost element.
http://help.sap.com/saphelp_di46c2/helpdata/EN/9d/1f4b6e5733d1118b3f0060b03ca329/frameset.htm
hope this helps you.
Regards

Sales order costing (MTO) Variant configuration.

Hi,
Basically there 3 different types of finished castings :
1.     Special finished Casting u2013 which is a configurable material . this casting is saleable as well as can be used for manufacturing machined castings. This casting is been manufactured at plant : 8110 only. The planning strategy maintained is 25 (make to order with configurable material)
2.     Machined Casting u2013 this is also an configurable finished material which can be sold as well as can be used as an BOM for manufacturing Assembly castings. This casting gets manufactured at plant : 8130 only. The planning strategy maintained is 25 (make to order with configurable material)
3.     Assembly casting : this is also an configurable finished material which is always saleable. This casting gets manufactured at plant : 8130 only. The planning strategy maintained is 25 (make to order with configurable material)
Scenario which is as follows :
1.     Customer gives the PO for assembly casting at 8110 plant code.
2.     Therefore Plant : 8110 will generate the stock transfer order to 8130 for assembly castings
3.     For manufacturing of assembly castings in 8130, the plant needs to manufacture Machined castings in 8130 plant and for manufacturing machined castings in plant 8130 , the plant requires special castings which is been manufactured at 8110 plant.
4.     So, firstly Special castings will get manufactured at 8110 plant with the reference of assembly sales order .
5.     After that stock transfer for special castings will be done from 8110 to 8130 plant .
6.     Then customer would start manufacturing machined castings
7.     And then finally manufacture assembly casting
8.     Finally assembly castings will get transferred from 8130 to 8110 plant for sale
9.     Sale of assembly castings from 8110 plant respectively.
Touch points of the scenario:
1.     Cost of special casting and machined castings should get rolled up to the assembly castings
2.     These needs to be executed in MTO scenario only because of variant configuration
3.     While doing the stock transfer, the cost should include transfer pricing as well
Problem Statement :
1.     We understand that for configurable material , you cannot run the standard cost estimate, therefore the material master price with price control u201CSu201D is always zero. So when do the stock transfer from of assembly cast or special cast for one plant to another then cost update happening at both the plants is zero.
Please suggest some better solution for incorporating this scenario inclusive of the touch points.
Thanks...

Dear Srinivas,
You can post this query to SD forum also for better response.
Regards,
Rakesh

Transfer of Sales Order stock - MTO scenario

Hi,
We have a situation in a MTO scenario, in MMBE we see a Sales Order stock for a material.
THe Sales order is archived from the system and he corresponding PP order is also in TECO status.
We need ot use that Sales order stock and transferit unrestricted.
We cannot use any of the movement types as we get the error message Sales order is archived and does not exist.
Is there any way we can use the Sales order stock. Please suggest something orther than reversing the PP cycle.
Rg,
Vipul

Hi Vipul,
Please check OSS note 202345.
BR
Csaba

Changing the Assignment of production order in sales order in MTO scenario.

Hello all!
I have following problem:
After the MRP a production order was created for a sales order. Because of the production in another plant
the production order which was created automatically had to be technically completed and a new one
created.
If you want to check now the availability, the sales order finds nothing, because it's linked to the one,
which was technically completed. Now is the question how can I change the production order for this
sales order. (In the production order the correct sales order is connected!)
As I found out it's connected to the field AUFNR in the table VBEP. But how can I change this
field within a transaction and not in the database?!?

No replies

CTM Order Selection MTO scenario

Hi,
I have cfreated a Sales Order in ECC with Requirement Strategy as Made To Order and CIFed the order to APO.
The order is getting CIFed and is reflecting in APO.
The issue is that when I try to do Demand Simulation using CTM the order is not getting recognised.
Is their some setting that needs to be done in case Sales Order for MTO scenario.
Please help me in this regards.
Thanks,
Sanjog

Hi Sanjog,
can you see the sales order in APO (/sapapo/rrp3).
please maintain in the demand prioritization profile the category for this sales order and then try simulating the demands.
let me know if it works.
Thanks
Binod

In which scenario sales order costing is needed ?

Is it mandatory to have every time for a sales order to have sales order costing?
is it mandatory to have SO costing in MTO scenerios always?
in which scenerio SO costing is not applicable in MTO scenerio ?

Dear ,
POC is a Cost object in Product Cost by Period that collects the periodic actual costs incurred in the production of a materia.
Product cost collectors are independent of the production type. This means that you can collect actual costs on product cost collectors in the following production environments:
In order-related production (that is, when you are using production orders) when you want to analyze the costs by period rather than by lot
In process manufacturing (that is, when you are using process orders) when you want to analyze the costs by period rather than by lot
Repetitive manufacturing : In repetitive manufacturing you always use product cost collectors as cost objects.
Few important points from Forum Experts
u2022 Object in cost accounting used in Repetitive Manufacturing.
u2022 A separate product cost collector can be created for each production version or material. The collected costs are settled to inventory at the end of the period.
u2022 The functions performed for product cost collector during the period end closing process include :
u2022 Work in process (WIP) caculation
u2022 Variance calculation
u2022 Settlement
u2022 In Repetitive Manufacturing, all costs attributed to the production of a material are collected on a product cost collector and settled periodically (period-based Controlling).
u2022 The product cost collector is settled periodically according to the posting period (for example monthly) .
u2022 For a material , product cost collector is made for each version
u2022 The actual cost collected can be viewed through product cost collector
you cannot use product cost collectorsfor the following:
- Production orders or process orders that are manufactured for a sales order stock or project stock
- Production orders or process orders that are part of a collective order
- Joint production environments
Hope this will give you an idea .
Regards
JH

Sales order cost estimate with GIT account

Hi,
Business introduced Goods - in - Transit (Balance sheet account), so PGI will always post to GIT and Invoice it will get reversed.
For one of the Configuratble material (MTO) scenario we need the Sales order cost estimate to get the Planned cost.
When i try to execute the sales order cost estimate it says cost element doesnot exist for GIT GL (WHich is right).
But with maintaining the GIT how to achieve the sales order cost estimate.
I tried to create CE category 90 for GIT, in Cost estimate am getting error CE 90 not supported for Cost estimate.
Kindly help this is kind of urgent req for us
Thanks,
Sudha

Hello Ashley
Yes, if you have done your settings correctly, especially Requirements class set up (see the documentation link), then the cost estimate will flow to a condition type in Pricing, usually EK01/EK02 conditions. These conditions are used to calculate sales prices (PR00) in cost-plus (mark-up) scenarios.
Link: http://help.sap.com/erp2005_ehp_04/helpdata/EN/90/ba6da4446711d189420000e829fbbd/frameset.htm
However Profit margin as calculated in a sales order comes from VPRS condition (which is based in Material Master) and is the difference of net value and VPRS condition value in normal circumstance.
Hope other more knowledgeable experts will weigh in.

Sales order costing release not possible due to Goods in transti account

Hi,
Business introduced Goods - in - Transit (Balance sheet account), so PGI will always post to GIT and Invoice it will get reversed.
For one of the Configuratble material (MTO) scenario we need the Sales order cost estimate to get the Planned cost.
When i try to execute the sales order cost estimate it says cost element doesnot exist for GIT GL (WHich is right).
But with maintaining the GIT how to achieve the sales order cost estimate.
Can you please help me in this regards.
Thanks,
Sudha

Hi Ajay,
I have created GIT (B/S) account with CE category 90.
but in sales order cost estimate getting message " inconsistancy in CE category" CE category 90 is not accetable it should be either 01/02
can you please help to move forward on sales order cost estimate with GIT account
Thanks,
sudha

Sales Order Cost Estimates -- Versions?

In our MTS plant we are creating cost estimates each month with different version numbers so they can easily be compared to review cost changes.
This concept in our MTO plant is (of course) a problem.
We would like to create a dummy sales order and on each line list a KMAT and build an "average" configuration. We use variant config, so the sales order bom is built automatically. It also costs automatically. We would like to save this cost estimate and compare it with a cost estimate of the same configuration next month. I do not have an option for version CK51n, nor do I see a Costing Date in KEKO table. Either of these items for MTS would create a second cost estimat and allow comparison.
Is there a way to compare Sale Order Cost Estimates across periods?
Any other suggestions as to how to obtain the required data??
Thank you for all suggestions!!

Any one think of a solution?
thanks

Sale order costing process : Help required

Hello All,
Belatted Happy New Year 2011 to all.
I have a question related to Sale Order Costing. It goes like this,
My client is into Pipe coating business who receives the pipe from the customers, coats it as per there requirements and despatches it thereon. There is no concept of FG here as its only the service he is doing on it and also when he receives the pipe there is no raw material cost on it. Raw materials for him would be chemicals etc which he uses to coat the pipe.
And also this demands variant configuration from SD and PP angel.
As this scenario is customer specific, it demands Sale Order based costing(Sale order cost estimate).
My doubt is, how the sale order costing process goes with.
In general scenarios, Make to stock, we use production order based costing where standard cost estimate is calculated for planned cost and actuals are incurred on PO settling the variance to COPA
Similarly how the costing goes with if Sale order cost estimate is used. What i think is, here instead of Standard cost estimate for plan, we will go with Sale order cost estimate at sale order level, and incur actual cost at production order and settle the cost of Production order to Sale order. Correct me if i am wrong, and request you ppl there to explain me the process of costing in the scenario said above.
apart from that, my client wants the flexibility to change the cost estimate at quotation level.
Please suggest me with solution explaining the process of costing here.
Thanks in advance,
Ravi Kumar

Hi Ravi
Your understanding of the scenario is very much right...
In your case, you need to have sales order as cost object...
Process
Your stock would be non valuated stock, because the FG is not your stock.. You are just doing a service
Based on the characteristics chosen in the Sales orders, system would determine the Sales order BOM
Based on sales order BOM, Sales order cost estimate would be calculated....
You would receive the Customer pipe in your stock against the sales order... It would be a non valuated GR... You can track the Qty only
Sales order would trigger a production order... The prod order can have its planned cost, which is only for information sake
The Customer Pipe, Chemicals would be issued to prod order to coat the pipe... And also Labor/machine hrs may be confirmed
There after your production order would be settled on Sales order
Then you would do PGI (Post Goods Isue).. This will not trigger any accounting doc
Then you do billing... The sales revenue would be posted on the sales order
Then you settle the sales order to COPA.. This will close the cycle
Configuration
The IMG Settings required would be as below
1. You would use account assignment category (AAC) E
2. Create a Requirement class with
a. AAC = E.... (Means sales order is CO Object)
b. Valuation Indicator = BLANK (Means Non Valuated Stock)
c. Costing ID/Costing Method = As per your choice to calculate the Sales order cost estimate
3. Assign this req class to Requirement Type
4. Give this req type to your PP/SD team.. They would assign it to Strategy group / Item Category to determine it in the sales order
Regards
Ajay M

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.

Sales order costing - tracking of actual costs at sales order item level

Hi
We are going with sales order costing for services
Service material is non-valuated hence the scenario is non-valuated sales order stock
PP module is not implemented.
I am having following questions
1. How to track the actual costs at sales order item level? Is Internal order/CO production order is required to be created for the same?
2. Can I do activity confirmations directly from cost center to sales order item.
3. Can Raw material is issued directly against sales order item.
4. Is Sales order is a real or statistical account assignment object?

dear friend,
please look here:
http://help.sap.com/saphelp_47x200/helpdata/EN/42/d7248ab27111d19e9a080009b0db33/frameset.htm
http://help.sap.com/saphelp_47x200/helpdata/EN/90/ba6cfb446711d189420000e829fbbd/frameset.htm
reagrds,

Duplicate Overheads in Sales Order costing

Hi Experts,
We are facing an issue in VA02 and VA22. Here we are getting duplicate overheads in costing as below image:
Kindly help. I am an ABAPer and debugged for it but could not find any bug. So this functional approach could help, I thought.
Thank you so much.
Jayaprakash

As Warren mentioned, you need to work with your CO specialist. To analyze the issue, more information on the process is needed. If the process involves sell from stock, then take a look at OSS 1972019 - Sales Order Costing: Duplicate Overhead Rates for Sell-from-Stock
Or if it is a re-work scenario, you may need to implement OSS 1844495 - Rework for product costing: duplicate overheads and 1204894 - Rework sales order costing: Duplicate process costs
Regards,

Sales order costing - MTO Scenario

Similar Messages

Maybe you are looking for