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Re: Relationship between project at WBS element level to ETO

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HI Swathi,

 

Basically, ETO is a Complex situation where even the product design is finalized after reeving the Customer Order.

 

Normally the Business Process Starts like this

 

1) Entry, Quotation : This is one of the biggest step to start the business, since i have seen a client who is having a setup meeting with client to explain the product & its deliverable.  Since its a unique product the cost & time would be high.  In this discussion business already have a Project Design ( Previous Project) & based on the time,cost & deliverable will be decided once the Customer agree the same.

 

2) Production Planning Team : After agreement the sales team send a information to the Production Team to make a schedule as per as client time liens  In this time A project will be created with the Sale Order.  Sales Order will have account assignment category of the WEBS for every line item level

 

3) Project Executing : Project team wlll execute the Project & delivery the same to the Customer

 

4) Billing : Based on the Agreement with the Customer invoice will be raised.

 

more or less the same process would be in place in ETO.

 

From the Point Of the SAP :

 

1) ETO : Here the Sales Order would be a Cost Object means all the revenue & cost would be booked at the Sales Order Level.

 

2) Requirement Type - Requirement Class - Special Stock : these are the 3 setting important to make a Costing for the Project.

 

3) Delivery Billing : After completion of the it would be transferred from the Project Stock to Sales Stock & the same would be delivered and followed by billing.

 

Coming to your point : what is the difference between the Sales process with or without Project.

 

Cost Object  : Normal Process the Sales Order will not be a Cost Object but in ETO the Sales Order would be a Cost Object

 

Account Assignment : Account assignment would not be there in normal sales process

 

Stock : Normally stock would be a Plant Stock, but in this case it would be a Proejct or Sales Order Sock.

 

Billing & Delivery : WBS element would be there as a Account Assignment in FI Journal Entries in case of ETO  & Normal process WBS would not be there as Account Assignment in FI.

 

Please find the below screen :

 

 

ETO.png

 

Regards

Raj


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