Cost Analysis in Complex Make-to-Order Production

The central feature of complex make-to-order environments is that products are modified or even completely redesigned in response to particular orders. The manufacturer needs to be able to plan and monitor the costs and revenues of such production environments effectively.

Different processing methods are available for this scenario:

Cost management directly through the sales order item (make-to-order).

This method has the following options:

You can use a valuated sales order stock in conjunction with sales order items that carry costs and revenues.

This is the type of processing recommended by SAP.

You can use a nonvaluated sales order stock in conjunction with sales order items that carry costs and revenues.

Cost Object Controlling for projects (engineer-to-order) for complex manufacturing such as plant engineering. This method has the following options:

You can use a valuated project stock in conjunction with WBS elements that have costs and revenues.

This is the type of processing recommended by SAP.

You can use a nonvaluated project stock in conjunction with WBS elements that have costs and revenues.

For information on mass production on the basis of sales orders, see the following section:

Cost Object Controlling: Mass Production on the Basis of Sales Orders

For more information on Cost Object Controlling in complex make-to-order environments, see the following section:

Product Cost by Sales Order

See the following section in particular:

Sales Order Item That Carries Costs and Revenues

For detailed information on managing costs in engineer-to-order environments, see the documentation Project System .