SAP S/4 HANA 2021: CO Product Costing flow for ETO Scenario

SAP S/4 HANA 2021: CO Product Costing flow for ETO Scenario

Normally, If companies following manufacturing process link with WBS , Networks then we can suggest it as CO Product Costing flow for ETO Scenario

As per my practical exposure here in ETO identified two types of ETO Process

a). ETO Production process with Production Order

b). ETO Production process without Production Order

A). ETO Production process with Production Order

For every sales order automatically created one WBS element for which we need to do design Standard Project, WBS and Network and link to ETO process material

In this process like other production order here also we need to design BOM, Routing and the followed by Production order with respect to WBS which will be created automatically

then Goods issue ( Input material consumption) and Activity confirmation to production order and Goods Receipt with respect WBS element can do. and finally we will calculate variance if any between plan & actual and the settlement.

This process as we discussed with valuated so Goods receipt and Delivery will be there we can collect actual COGS and will be updated for WBS Element.

Once billing done revenue will be captured , then we can analyze profit/loss between revenue and cogs by WBS RA key calculation and settle to COPA (either Account based or Costing based) , here i used account based COPA only.

A). ETO Production process without Production Order (means Material cost book to WBS and Activities book to Network)

Here also process like above 1 st, for every sales order automatically created one WBS element for which we need to do design Standard Project, WBS and Network and link to ETO process material

In this process there is no production order here. We also need a work center for each activity like Machine. Labour etc.. then Actuals book like Goods issue ( Input material consumption) to WBS element and Activity confirmation to Network.

This process is non valuated so No Goods receipt and Delivery will be there and we can collect actual while calculation WBS RA key calculation

Once Sales order related Billing done and Revenue (without delivery)will be captured , then we can analyze profit/loss between revenue and cogs by WBS RA key calculation and settle to COPA (either Account based or Costing based) , here i used account based COPA only.

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