In this blog, we will talk about implementing the Engineer to order concept in F&O. In Engineering order, the outcome is as per the customer’s need. So, the product, materials, and processes differ frequently.
Engineer to order is usually associated with projects. The project generally has activities like Designing, Planning, Installation, etc. In F&O, the above concept goes similarly. We create a Project, and through it, we can carry related project activities and production.
We will first create a project for which will carry Engineer to Order, in All Project form.
Then comes the work breakdown structure. In it, we will define activities to be carried out in the project.
In the designing phase, the bill of material gets decided, and on that, production is carried out. We will then define the statement of material.
We will also define the route for the production process.
Then based on work breakdown, structure forecasting will be done, which will provide activity-wise costs.
In budgeting, we will set the budget for the project, which will go through the submission process for approval.
In the planning phase, resource scheduling gets decided. The resource will be assigned and booked for the project.
Post the hours of Designing, Planning, Installation, etc., and expenses like Travelling, Transportation, Meal, etc., related to the project through project journals.
Create a Production order in a project to carry project-related production. We take Production orders as we usually do.
There will be a link between production order and project, as you will see the project ID in the production order for reference.
Quality order will be created for the item produced through Production order on reporting an item as finished. In Quality order, we will enter the results of the quality check.
On ending the Production order, we will post the packing slip for the delivery in the sales order created with the production order.
We will create milestones in on-account transactions for invoice proposals.
Then based on this milestone, we will create a Project invoice proposal and post it.
And then, on the completion of the project, change the Project stage to Finished.
In case if you have any queries, do not hesitate to get in touch with a DEV IT expert.