Engineer-to-Order (ETO) – Quotation Processing (232)

1. Engineer-to-Order (ETO) – Quotation Processing (232) SAP Best Practices

2. Purpose, Benefits, and Key Process Steps • Purpose • This scenario describes the quotation processing in a standard Engineer-to-Order (ETO) environment. • SAP functionalities of Sales & Distribution (SD) and of Project System (PS) are used to control the complete process, from customer inquiry to the handover to project assembly (described in the scenario 240, ETO Project Assembly). • In addition to the SAP reporting functionality also the special purchasing functionality “long lead time procurement” is part of the process. • Benefits • Deep integration to the project structuring and calculation allows for a consistent controlling of all steps and values • Copy functionalities – e.g. from inquiry to quotation – are facilitating compliance with the process rules • All values and parameters for the subsequent process (ETO 240) are available as default parameters • The option for the creation of project versions are allowing a continuous recording of all relevant values along the controlling process and a later comparison of the several situations • The long lead time procurement process is an important step to guarantee material availability on time • Cost planning, budgeting and comprehensive reporting functionality allows for a detailed controlling of the project • Key Process Steps • Creation of inquiry with linkage to project • Easy Cost Planning • Creation of quotation with reference to the inquiry • Integration to the project system including calculation and scheduling functionalities • Controlling and reporting along the complete process

3. Required SAP Applications and Company Roles • Required • Enhancement package 5 for SAP ERP 6.0 • Company Roles • Sales Administrator • Project Manager

4. Detailed Process Description • Engineer-to-Order (ETO) – Quotation Processing • This scenario describes a business process in a typical engineer-to-order (ETO) environment. Sales & Distribution (SD) and the Project System (PS) are used to control the complete process from the customer inquiry to the accepted quotation. The process has a final step with the start of the long lead time procurement. • First process step is the creation of the inquiry and the linkage of a customer project to the inquiry • Creation of the quotation with reference to the inquiry • Project structuring is the prerequisite for the above-mentioned step • Project scheduling and calculation (basis for the quotation) are carried out • Cost Planning, Budget Planning and Pricing are carried out while processing the project • Reporting and project versions are completing the scenario • Long lead time procurement starts with the customer acceptance of the changed quotation

5. Process Flow Diagram Engineer-to-Order (ETO) – Quotation Processing Customer Activity / Event Sales Administration Creation of Inquiry Linking project (WBS-element) with inquiry Creating quotation with reference to inquiry Update quotation with price conditions Transfer milestones to quotation 1 Project Manager Creation of project based on template Easy cost planning calculation Project scheduling Project costing Project cost reporting Sales Administration Changing quotation according to customer need Update quotation with price conditions Project Manager Creation of project version Update project activities and components Project Re-Scheduling Project Costing Project cost reporting Perform budgeting Compare project version with actual data Perform long lead time procurement Process ETO 240 Project Assembly 1

6. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision