What is engineer-to-order in SAP CO-PC - Product Cost Controlling?

SAP Term: engineer-to-order

• Component: CO-PC

• Component Name: Product Cost Controlling

• Description: A manufacturing environment in which complex production activities under essentially one-off conditions are undertaken for a specific customer. The production structures are managed using a work breakdown structure. At this level, the following planning steps for the project are performed: Budget management Revenue planning Finance planning Cost planning The production processes are managed using a network. The dates, resources, and associated costs are planned at this level.

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• Key Concepts: 
  Engineer-to-order (ETO) is a type of manufacturing process in which products are custom-made to meet the specific needs of a customer. In this process, the customer provides detailed specifications for the product, and the manufacturer designs and builds the product according to those specifications. The SAP CO-PC Product Cost Controlling component is used to manage the costs associated with engineer-to-order processes. It helps to track and analyze costs related to design, engineering, production, and other activities associated with ETO processes.
  
  How to use it: 
  The CO-PC Product Cost Controlling component can be used to track and analyze costs associated with engineer-to-order processes. It can be used to monitor the cost of design, engineering, production, and other activities related to ETO processes. It also provides detailed reports on cost performance and can be used to identify areas where cost savings can be made.
  
  Tips & Tricks: 
  When using the CO-PC Product Cost Controlling component for engineer-to-order processes, it is important to ensure that all costs are accurately tracked and reported. This will help to ensure that all costs associated with the process are accounted for and that any potential cost savings are identified. Additionally, it is important to regularly review cost performance reports in order to identify areas where cost savings can be made.
  
  Related Information: 
  The SAP CO-PC Product Cost Controlling component is part of the SAP ERP system. It is closely related to other components such as Materials Management (MM), Production Planning (PP), and Quality Management (QM). Additionally, it is often used in conjunction with other components such as Sales & Distribution (SD) and Financial Accounting (FI).