I am working in a typical make-to-order scenario I am using following steps
Create Sales Order
Order BOM Cost Estimate
Create MRP
Convert Planned Ord. to PRD ord.
Create Production Order
Goods issue against production order
Create Production Order confirmation
Goods receipt against production order
Calculate Overhead
Calculate Variances
TECO (Technically Complete) Production Order
Settle Production Order
Close Production Order
Create Delivery
Post Good Issue
Create Billing document
Process Incoming Payment
Kindly suggest whether the above steps are correct plus how the Order BOM Cost Estimate will be created i.e. from where the system picks values in cost estimate and how cost estimate will effect later steps.