Hi Nayak,
In Sales Order Costing (MTO), SAP supporting 3 scenarios.
Scenario 1: Valuated Stock (Sales Order is an cost Object)
Scenario 2: Valuated Stock (Sales Order is not an cost Object)
Scenario 3: Non Valuated Stock (Sales Order is an cost object)
Scenario 4: Non Valuated Stock (Sales Order is not an cost object) which is not supported by SAP.
Process Flow of Scenario 1 : Valuated Stock (sales Order is an Cost Object)
Here you can post special expenses with reference to Sales Order (here sales order is an one of the cost object), we can do the Result Analysis and Settlement at Sales Order level, and also Inventory values will be updated online.
step 1: Creation of Sales order
step 2: MRP Run (production order creation with reference to the Sales Order)
step 3: GI, Confirmations, GR at production Order level.
step 4: Month End Activities at Production Order Level.
step 5: Result Analysis at sales Order level.
Step 6: Settlement at Sales Order Level (COPA Document will be Generated)
PGI and Billing (COPA document will not generated at the time of Billing) is as same in SD Process, here cost of Sales will be updated in EK01 or EK02 conditions.
Process Flow of Scenario 2 : Valuated Stock (sales Order is not an Cost Object)
Here you could not able post special expenses with reference to Sales Order, and also Inventory values will be updated online.
step 1: Creation of Sales order
step 2: MRP Run (production order creation with reference to the Sales Order)
step 3: GI, Confirmations, GR at production Order level.
step 4: Month End Activities at Production Order Level.
PGI and Billing is as same in SD Process, here cost of Sales will be updated in EK01 or EK02 conditions.
Process Flow of Scenario 3 : Non Valuated Stock (sales Order is an Cost Object)
Here you can post special expenses with reference to Sales Order (here sales order is an one of the cost object), you must perform Result Analysis and Settlement at Sales Order level, and the Inventory values will not be updated online.
step 1: Creation of Sales order
step 2: MRP Run (production order creation with reference to the Sales Order)
step 3: GI, Confirmations, GR at production Order level.
step 4: Result Analysis at sales Order level.
Step 5: Settlement at Sales Order Level (COPA Document will be Generated)
PGI and Billing (COPA document will not generated at the time of Billing) is as same in SD Process, here cost of Sales will be updated in EK01 or EK02 conditions.
Hope this will be clear for your understanding.
Thanks & Regards
Srinu
SAP Practice