Costs in Complex Make-To-Order Production (SAP Library

Costs in Complex Make-To-Order Production

The main feature of complex make-to-order production is that the product to be delivered requires order-specific changes or complete redesign. In such cases, you must plan and monitor costs and revenues at a detailed level.

Various process are available to handle this scenario:

Cost object controlling using projects (Engineer-to-Order) for complex production

In this case, you can work with:

Valuated project stock, in conjunction with cost and revenue bearing WBS elements
Non-valuated project stock, in conjunction with cost and revenue bearing WBS elements

Direct cost monitoring, using the sales order item where there is a connection to a sales order (make-to-order)

In this case, you can work with:

Valuated sales order stock, in conjunction with cost and revenue bearing sales order items
Non-valuated sales order stock, in conjunction with cost and revenue bearing sales order items

For detailed information on the role of cost object accounting in complex make-to-order production, see Product Cost by Sales Order in the Cost Object Controlling (CO-PC-OBJ) component.