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Engineer-to-Order (ETO) – Project Assembly (240)

Engineer-to-Order (ETO) – Project Assembly (240). SAP Best Practices. Purpose, Benefits, and Key Process Steps. Purpose This scenario describes the order processing in a standard Engineer-to-Order (ETO) environment.

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Engineer-to-Order (ETO) – Project Assembly (240)

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  1. Engineer-to-Order (ETO) – Project Assembly (240) SAP Best Practices

  2. Purpose, Benefits, and Key Process Steps • Purpose • This scenario describes the order processing in a standard Engineer-to-Order (ETO) environment. • SAP Project System is used to control the whole process, from the SD requirement to planning, purchasing, production and delivery. • SAP Project-Oriented Procurement (ProMan) is used as an advanced tool to control the planning/purchasing steps in the order procedure. • Benefits • Project structuring/execution via project system is used to control the collaboration between different departments • Milestone billing is used to control the progressive payment procedure, and track back the status of the project • Use of ProMAN to control and monitor the manufacture/procurement procedures centrally • Assignment of personnel resources and technical documents possible • Delivery the semi-finished goods via the project • Handling the final assembly on customer site using network activity in the project • Key Process Steps • Creation of sales order with reference to the quotation • Billing milestones transferred to sales order from project • Use of ProMan for procurement process of components • Assignment of personnel resources and time recording • Assginment of technical documents • Confirmation of project activities • Subassembly for semifinished goods • Delivery to customer

  3. Required SAP Applications and Company Roles • Required SAP Applications • SAP enhancement package 6 for SAP ERP 6.0 • Company Roles • Sales Administrator • Project Manager • Billing Administrator • Buyer • Warehouse Clerk • Production Planner

  4. Detailed Process Description • Engineer-to-Order (ETO) – Project Assembly • This scenario describes a business process in a typical engineer-to-order (ETO) environment. The project system is used to control the complete process from SD requirement to planning, purchasing, production, and delivery. Project-Oriented Procurement (ProMan) is used to control the planning/purchasing steps. • The process starts with the creation of a sales order with reference to the quotation. • Adaptation of project data to the sales order (e.g. finished date, rescheduling of project) • Assignment of personnel resources • Execution of advanced procurement for long lead-time materials using ProMan for requirements planning • Assignment of technical documents • Usage of project milestones to provide a basis for a SD billing plan • Start of preliminary work in R&D phase, first payment of the customer • Goods receipt for long lead-time components and check of availability of stock materials • Materials requirements planning using ProMan to create planned orders over the whole BOM • Subassembly for various semifinished products and confirmation in WBS element. The customer should pay the second advance payment. • Delivery of components to the customer • Final payment of the customer

  5. Process Flow Diagram Engineer-to-Order (ETO) – Project Assembly Prereq. Process ETO Quotation processing (232) Sales Admin. Transfer billing milestones Creat sales order with reference to quotation Project Manager Analyze project status Release WBS element for R&D activities Analyze project status Release purchase order Update project Assign technical documents Create delivery from project Record time and data transfer Finish production Assign personnel resources Finish R&D activities Finish delivery Release WBS element for advanced procurement Final confirmation of activities Release WBS element for production Billing Admin. Perform billing and settle down payment AdvancedProcurem. ProMan-MRP for project ProMan-MRP-run for semi-finished products Wareh.Clerk Goods Receipt for long lead-time components Goods issue and receipt for production order Post good issue Prod.Planner Procurement of stock Posting raw materials to project Start production for single item BOM Subseq.Proc. Period end closing “General Plant” (181) Accounts receivable (157) Closing operations SD (203)

  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

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