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Make to order process requirement

Dear All,

Need few information about sales order costing

I am well aware about make to stock process in costing but one of my client want to migrate from make to stock to make to order scenario so they want sales order costing to implement.

Few thing I want to know are and please correct me if I am wrong

  1. Like in make to stock we do costing from ck40n and in make to order we do costing from sales order itself,(from tab -  Extra – Costing ).
  2. So in make to order scenario we first create sales order  of FG and accordingly we procure raw material against that sales order (BOM and routing is maintain for that FG), what FI entries system post in that case?
  3. Once raw material procured we do sales order costing and system will do standard costing of FG according to price at which RM procured and not from what price maintain in material master as no price maintain in material master in make to order scenario.
  4. So question is does system calculate target cost in production order same way as done in make to stock?
  5. How we calculate WIP , variances and do settlement in MTO process?
  6. Supposed I done the costing but later find that one component is missing in BOM so I maintain the same in BOM, then how we can delete the old costing and do new costing in MTO.

Thanks in advance

Shayam

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