ETO - MTO scenario

[Former Member]

We have an ETO scenario where we have a Sales Order assigned to a WBS element. Project creates MRP for material procurement and assembly. So all the purchased components are account-assigned to the Project and the project creates Producttion Order for in-house production of FG.

At the month end should the variances on the production order be settled to the Material and COPA or should it go to the WBS (or should it be network)? The reason I am asking this is because when we run the s_alr_87013533 report for projects we do not see any production order related actual costs in the actual costs column of the report.

Please advise.

thanks

raj

[Former Member]

Hi  Raj,

Set individual /Collective indicator to 1 for in-house produced FG in Material master(MRP4 screen).

Hope it helps,

Jatin

[Former Member]

Jatin,

The indicator is already set. But my question is where do I settle the variances (labor and overhead related only) on production order? Is it to the network activity or to the material/COPA?

Thanks,

Raj

[Former Member]

Hi Raj,

If indicator is already set, Settlement receiver in production order should autopopulate to network.

You said , there is no actual cost posting in report s_alr_87013533 . then this setting is not correct... Blank or 2 both will not tie production order to project.

Regards,

Jatin

[Former Member]

Jatin,

The indicator is 1. Should I put the default receiver object in the settlement profile as NWA?

Please advise.

raj

[Former Member]

Raj,

Yes. Process for ETO is similar to MTO.  MTO has sales order as settlement received ,if production order is tied to Sales order.

In ETO , it is just replaced by NWA.....

In both scenario , if you decide to delink production order , then Settlement received should be material.

Hope it helps,

Jatin