SAP S/4 HANA : CO Product Costing flow for ETO Scenario

🎓 Unlock the Secrets of SAP S/4HANA: Master ETO Product Costing Flow for Engineer-to-Order Production!

🚀 Course Title: SAP S/4HANA : CO Product Costing flow for ETO Scenarios (Engineer-to-Order)

🧪 Course Description:

Dive into the world of Engineer-to-Order (ETO) product costing within SAP S/4HANA, a system renowned for its robust and versatile capabilities. This course is meticulously designed to guide you through the intricate flow of ETO production processes using Project Systems (PS), Work Breakdown Structure (WBS) Elements, and Networks.

Key Takeaways:

• Understanding ETO: Learn how SAP S/4HANA handles ETO scenarios, where each product is tailored to the customer's specific needs, involving unique designs, specifications, and a tight integration of sales, design, manufacturing, and costing.

ETO Production Process with Production Order:

1. Project Creation: Initiate the process by generating a WBS element from a standard project template that includes predefined networks.
2. Design Phase: Craft the Bill of Materials (BOM) and Routing, which outline the required materials and the sequence of production operations.
3. Production Order Creation: Create a production order that references the ETO product's BOM and routing.
4. Goods Issue: Issue the necessary materials, reducing inventory and booking costs to the production order.
5. Activity Confirmation: Record the actual labor and machine hours used in the production process.
6. Goods Receipt: Upon completion, receive the finished goods into stock, capitalizing the finished product's cost.
7. Variance Calculation: Analyze the differences between planned and actual costs to understand the variances.
8. Settlement: Allocate the accumulated costs from the production order to the WBS element.
9. Billing & Revenue Recognition: Bill the customer upon delivery, capturing revenue at the WBS level.
10. Results Analysis (RA) Key Calculation: Compare revenue against costs to determine profit or loss.
11. COPA Settlement: Analyze the order's profitability by settling data to Controlling Profitability Analysis (COPA).

ETO Production Process without Production Order:

1. Project Creation: Similar to above, a WBS element is generated from a standard project template upon receiving a sales order.
2. Work Centers & Activities: Define work centers for various activities like machining, labor, etc., and link them to the network activities.
3. Goods Issue: Issue materials directly to the WBS element, reducing inventory and booking costs.
4. (Direct) Activity Confirmation: Confirm labor and machine hours directly against the network activity.
5. Results Analysis (RA) Key Calculation: Determine profit/loss by comparing revenue against costs at the WBS element level.
6. COPA Settlement: Analyze the order's profitability by settling to COPA.

Conclusion: The integration of SAP Project Systems (PS) with Controlling (CO) and Logistics (LO) is paramount for accurate cost tracking and robust profitability analysis in ETO scenarios. This course will empower you to maintain transparency of costs and revenues associated with each project, ensuring that you can confidently navigate the complexities of ETO production within SAP S/4HANA.

🎓 Join us now and transform your expertise in SAP S/4HANA to master the ETO Product Costing flow! 🚀