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Engineer to order process flow

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Hi ,

Can any one give the Engineer to order process flow.

Thanks &Regards


Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi Raghavendra,

In ETO you can observe the following points-

The nature of product is complex. You need to do the engineering and designing based on the specifications given by customers.

E.g. Capital Equipment manufacturing.

Less standardisation of data. Frequency of creation of new masters is high.

The duration of manufacture is high. The manufacturing process is treated as a project. Every movement becomes project specific. That is every movement will carry an account assignment as Q, along with the project name.

The production processes are managed using WBS elements & networks.

Planning steps liks Budget management, Revenue planning, Finance planning, Cost planning are carried out..



Answers (3)

Answers (3)

Former Member
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     realize that the T-20000 turbine, for which you have already created a material BOM, is the closest match to the requirements of the customer. However , sales-order-specific modifications are necessary for several assemblies. 

  1. You create a sales order.

  In the sales order item 10 you enter the material T-20000.

  1. You create a project with the number T-22223.

  1. You want to carry out sales-order-specific modifications to the turbine casing and the running gear. To do this, you fix the corresponding BOM in the order browser.

  The system then creates order BOMs as copies of material BOMs. You carry out the necessary changes to these order BOMs so that the product matches the customer requirements. The changes that you make to an order BOM do not affect the material BOM with the same material number.


  1. You design the extra coolant pump especially for this sales order. You do not yet know at which point you are going to integrate the coolant pump into the multi-level BOM. You create the following data in the SAP system:

    1. You create a new material with the material number P-110 for the coolant pump.
    2. You manually create an order BOM for the material P-110.

  You see a

detached order assembly. The detached order assembly is linked to the sales order item but not, however, to the multi-level BOM.  

  1. Once you have designed the coolant pump P-110, you want to start the production immediately so that it is available on time. Therefore it is not essential that the design for the entire turbine is completed.

    Assemblies with a Long Replenishment Lead Time 


  • You create a network operation for the assembly of the coolant pump P-110.

  • You maintain the reference points in the network operation and in the BOM items.

  • You transfer the order BOM for the coolant pump P-110 to Project System.
  If you trigger a multi-level BOM transfer for the T-20000 turbine, the coolant pump P-110 is


transferred with it because it has no relation to the header material for the T-20000 multi-level BOM. Therefore you have to trigger a BOM transfer especially for P-110. 

To ensure that the requirements are later correctly allocated in the final BOM transfer, you first generate preliminary requirements.

The system assigns the BOM items to network operations with identical reference points. The components of the coolant pumps P-111 and P-112 are therefore assigned to the network operation 3000.


  1. Now you want to generate planned orders in MRP for the coolant pump components. To do this, you carry out the following steps:
    1. You determine that the network operation 3000 (advance procurement) is relevant to requirements.
    2. You execute a planning run.
  The system generates planned orders for P-111 and P-112, which you can convert into production orders.
  1. At a later date you finish the design for the entire product.
    1. You include the coolant pump P-110 in the BOM for the T-20000 turbine.
    2. You determine that all network operations are relevant to requirements.
  1. You trigger a BOM transfer for the T-20000 turbine again.

The system settles the preliminary requirements generated by the first BOM transfer against the newly generated requirements.

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In ETO planned order are triggered from PS module.When ever a fert component is assigned to Activity and realsed IN Projectsytem.

Former Member
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Hi Raghavendra,

ETO Production uses the Network techniques for scheduling and coordinating processses and cost accounting.

MRP II uses the BOM to split up the production of finished product into similar units, while ETO divides the overall production process into work pacakges, which are specified in is a Work Breakdown Strucure (WBS).

ETO requires that production specific, non-production specific processes be handled together.

Actual costs are used in ETO production process. and it uses in WBS & Networks.

pls let me know any clarification.