on 2009 Jun 28 6:29 AM
In ETO (Engineer to Order) how the HALB and FERT are valuated. What is impact on Project actual Cost?
answered
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HI,
Usual practice in ETO scenario is there, we use KKPAN(Cost estimate without quanity structure) and find the cost of the product. And there will not be any permanenet BOM and routing since it is in very initial stage. So, while costing the material with KKPAN the approximate material consumption and rouitng values entered.
Once the production order is created, actuals is according to GI. And cost will be captured under the cost object according to settleemtn rule.
Vijay
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To my knowledge, in the case of ETO,
HALB & FERT material valuation and Project actual cost does not differ from other scenarios , e.g MTO , MTS.
Material valuation will be as per the std cost estimate.
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