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Make-to-Order : Cost Object

Dears

In a make-to-order scenario, what should be the Cost Object normally ?

I think it is 'Sales Order'.

Is it necessary that make-to-order should always have Sales Order as Cost Object ?

What is the benefit of making SO as a Cost Object in make-to-order ?

Please clarify to ward of my confusion.

Thanks

Former Member replied

Hi Nikki,

Yes. your understanding is right. When sales order is co object, till we do Sales order settlement both revenue and cost will not flow to copa. No COPA document also will not be generated. It is only during settlement co-pa document will be generated.

Hope this clarifies.

Regards

Karthik

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