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WE ARE FOLLOWING MAKE TO ORDER IS IT ESSENTIAL THAT WE DO COSTING

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Dear All,

we are doing make to order scenario is it essential that we do costing run . for finished products and semifinished products.

regards

sree

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Former Member
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hi,

Yes,

The process is triggered when an order for a configurable material is received from the customer. The customer order is recognized in the MRP run resulting in planned order for production of the material. If insufficient warehouse stock is available, purchase requisitions are created for the raw materials required.

When the production order is created, target costs are calculated for the order lot size (preliminary costing). During the production process, costs incurred are updated on the order, which enables you to keep track of and compare target costs and actual costs at any time.

Regards

Ravi