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HALB & FERT Valuation

Former Member
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In ETO (Engineer to Order) how the HALB and FERT are valuated. What is impact on Project actual Cost?

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Answers (3)

Answers (3)

Former Member
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answered

former_member740051
Contributor
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HI,

Usual practice in ETO scenario is there, we use KKPAN(Cost estimate without quanity structure) and find the cost of the product. And there will not be any permanenet BOM and routing since it is in very initial stage. So, while costing the material with KKPAN the approximate material consumption and rouitng values entered.

Once the production order is created, actuals is according to GI. And cost will be captured under the cost object according to settleemtn rule.

Vijay

Former Member
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With out settlement the Production actual cost is refelected on WBS as the Procution order generated for WBS.

Is this the right practise?

What do mean by Cost estimate without quanity structure?

former_member740051
Contributor
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HI,

1) yes, it is right

2) If we do not have stabilized BOM and routing, we can enter the values manually while executing the cost estmate. This si called cost estimate with out quantiyt structure

Vijay

Former Member
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While doing GR for Production Order, how we can valuate the HALB as per actual consumption?

Former Member
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To my knowledge, in the case of ETO,

HALB & FERT material valuation and Project actual cost does not differ from other scenarios , e.g MTO , MTS.

Material valuation will be as per the std cost estimate.