Dear Experts,
Client having Tool manufacturing process like below..
Client will get the requirement of component..to manufacture component Tools (Fixtures) Required. Customer will pay Toll cost to client.
Process is like below :
After receiving order from customer one department(NPD) will do feasibility study and design BOM and routing (Need to capture departmental manpower cost and any direct cost related to particular order)
After the same order will transferred to TOOLS department, they produce tool (Just like normal production process, Includes sub contracting also).
Client wants to capture all cost in single place to compare what is actual cost and how much customer paying.
Note: Customer will pay amount for tool, but tool physically with client to produce components.
Proposed Solution:
1. NPD cost will be captured in Internal orders.
2. For Tool manufacturing MTO process will be followed. Material will be non valuated. All costs will be captured in Sales order. Production orders will be settled to sales order. No WIP.
3. Internal orders will be settled to Sales order.
Note : Project Systems not in SCOPE.
Please suggest any better process to full fill requirement.
Thanks,
Gcs