Create a Character Blueprint (if your actor should walk around later…). If you like it to make this Character your player character duplicate or edit the "Third Person BP" or something similiar.

Rename and open the blueprint. In the main mesh component insert your retargeted DAZ character and set the Animation Blueprint you created by retargeting.

In the view tab you have to add new skeletal mesh components - as many as you need for clothing pieces. Let's say 1.) hat or helmet, 2.  upper body 3. lower body and 4. foot. These component are slots for assigning different clothing to the main character mesh.

In the construction script route the following nodes for each component:

• Set Skeletal Mesh - this is the clothing asset slot.
• Set Master Pose Component - this is the main character mesh component

Adding a Relative Position or Scaling is not necessary but sometimes the blueprint bugs with locating the assets properly. Then you can manipulate the axis values. Do not try to avoid poking through from skin texture by scaling up the clothing..:) You have to assign as the "target" always the component (or slot) for the assets by dragging from the component tree to the pins. Under New Mesh in Set Skeletal Mesh select from the drop down menu your asset for that slot. Let Reinit Pose selected.

Here you can  change the assets for later use, i. e. for changing character templates in a game menu by pinning a mesh variable. In the node Set Master Pose Component you have to pin the main mesh component "Mesh". After compiling you will get the dressed model in the viewport. As you can see, some skin texture pokes through the pants. This is because the model is not optimized for gaming and has a lot of unnecessary vertices and polygons. Usually in game development we don't need no underwear or skin under the clothing - it is not visible at all and costs the GPU rendering time and provide such graphic errors.

In a next step we fix that by getting rid off all unnecessary polygons - in DAZ 3D.

Retargeting in Unreal

In Unreal Create new folders and name them Animations and Material. Import the all new meshes without assigning a skeleton. It is important: Clear the recommended skeleton - and import your own skeletal mesh of every asset! It is needed for matching the main skeleton in the character blueprint. Ignore some messages about "missing bones"! If you get some errors with duplicate names please restart the export process. But it should not happen because of the error handling in the Y minus Universal DAZ 2 UE script.

 You do not necessarily need to follow again the retargeting process including the animation retargeting for all of your imported clothing! But if the following assignment via Blueprint fails…repeat it.

 Now we use the Unreal retarget manager. In UNREAL we have to retarget both - Base  Epic mannequin and Target!!!!

First we retarget our imported main character. Click on the skeleton file of your character and select the Retarget Manager!

Using the Retarget Manager

First make the bones visible. Be sure to be in the skeleton section and select in the view panel under the menu Character the bones as Scene element and then select All Hierarchy. Select then the bone called upperarm_r and vice versa left and the rotation tool and change the T-Pose to an A-Pose by bending both "upper arms" by 50 degrees. Down below in the retarget manager click on Modify Pose and Use Current Pose. Now add in the Current Skeleton dialog your character as  a new skeleton. Select it and it will appear in the list.

The central part is to set up a new rig.  So click on the drop down menu under Select Rig and select the entry Humanoid. Unreal Engine automatically detects the proper renamed bones. You can proof it in the assigned Target list. The last thing here is to set the mesh as the actual preview mesh. In the top left select the mesh for preview and don't forget to confirm the following dialog in the bottom right corner!

 Now change the view to the Skeleton tree tab beside the retarget manager. Here click on Options and then on Show Retargeting options. In the column Translation Retargeting click with the right mouse button on the entry beside the node hip and select Recursively set translation reatargeting skeleton. All entries will be changed to skeleton. Now we change only 3 nodes. Firstly click with the left mouse button on the drop down menu beside the bone Pelvis and select Animation scaled. The root bone has to be always animation. At last change on the bone spine 0 1 skeleton to Animation.

Now it is done and you should save your character.

Retargeting the  Base  Epic mannequin is an easier process. Search for the mannequin mesh and skeleton, click on the skeleton and repeat all necessary steps . You don't need to change any bone to different animation type in the skeleton tree. Save it and leave the window.

Retargeting the animations.

In the next step we transfer the animations of the unreal mannequin to the new character. First we look for the associated files. They are usually located in the Mannequin animations folder. In the best case, there is an animation blueprint. With a right mouse click we open the menu and select Retarget Animation Blueprints and there Duplicate Anim Blueprints and retarget. In the following dialog we select our new skeleton and look for the folder in which we want to save the animations. You should use a meaningful prefix to make it easier to differentiate. Click on retarget. You will now find the animation blueprint and the individual animations in the selected folder. To check functionality, you can drag an animation into the main window and click simulate.

Preparing the export

To start the export process, load your character and the clothes to be exported to the scene. There are a few things to consider for use in Unreal Engine. Unlike for purely rendering purposes, it is advisable to keep the number of vertices as small as possible. I therefore use a DAZ3D Genesis 2 character. But don't worry: The Universal Tool works with all figures from the Genesis family.
To keep the number of vertices and polygons low, it is recommended to use the base mesh and later delete unnecessary polygons. More on this later in the tutorial.
The same rule follows the first function in the main script - the main tool changes the resolution to the base resolution to decrease the number of vertices.
If you change your character very much through morphing, it is also advisable to adapt the skeleton  to the changed mesh by using the Yminus Adjust Rigging tool. This prevents unwanted effects when animating in Unreal Engine. Use it for the main character only, not for boots, hats or something similiar.
As this is your choice, this function has not been included in the universal tool.

Loading your character and clothing into the scene

To prepare the export process load your character and all clothing into the scene. Give your character the shape you want to.
If the character is meant to be much smaller or taller than the Base Genesis shape you should adjust the Rigging for the shape with the Yminus Adjusting Tool.
If you like to use your morphs in Unreal Engine use after the renaming process (with the Single Yminus Renaming Tool)  the standard export function and include "Morphs". This process is not topic of that documentation.

Bring all items on top level

Unreal Engine aborts the import process if it detects duplicate bone names in the fbx file.
We see in the scene tab that all clothing items are on a lower level of the main character. That means that if we exported the main character like this, we would have the bone name "Hip" and others  multiple times in there. You can easily check that with the Check Duplicates Tool.
We first have to bring all items to the main level by selecting them and dragging them to the top with the mouse.
Be sure that there are no items within another figure tree! (It could  cause root duplicates or bone name duplicates! You will be prompted by the unreal error log - duplicate bone names like "hip" prevent the importing process.)

Additional details

By the way - usually it is not recommended to merge meshes into the main figure for the use in Unreal Engine - but if you like to add some anatomical details or other stuff to the body, you should firstly merge them into the character, then delete the duplicate bones in the scene tab and then assign your clothing and export all figures step by step with the tool.
But that's not the topic of this tutorial, nor is it about using and exporting morphs.
The best way to let the character wear clothing in Unreal Engine is to assign it in a character blueprint. This gives you the opportunity to later change clothing or assets in game. It is not recommended to export one figure with all clothing attached.

Export

Select the desired figure for renaming and exporting.
Run the Yminus DAZ2UE Full Script for each item step by step. Enter meaningful names in the opening Save window for the following import. 
The tool will change the resolution, check für duplicate bone names, will rename all necessary bone names and labels and will export an fbx file with preselected options. You will have a separated folder with all textures in it for convenient import into unreal and later editing.
Not used bones according to the standard rig of Unreal Engine Mannequin will not be renamed.

Using DAZ 3D  characters and clothing in Unreal Engine faces a lot of problems: First of all: the standard rig of all UE-Characters are different to the DAZ 3D -characters. More than this, character design for an Game Engine follows other rules then for rendering purposes only. With a simple export via .fbx file format many issues occur: bones are scaled, skin texture pokes through the clothing, animations don't work.

To simplify the import process and make it safe, this small tool set is available. The Yminus-Tool Set shortens the time to rename all DAZ-character nodes (bones)  (and labels) for all Genesis, Genesis 2, Genesis 3 and Genesis 8 human characters and clothing for importing and use in Unreal Engine to match the standard rig of UE-characters. All of this is possible without the use of third party software, the DAZ to Unreal Bridge or expensive exchange tools!

With the yminus tools and the tutorial you will be able to use your purchased characters from DAZ 3D in Unreal - even for games or 3D-showreels.

It is not a one-click-solution - but it saves a lot of time and shows the proper way to export and work with DAZ-characters in Unreal Engine. Included in this package are the universal  script DAZ to Unreal Engine, where all necessary processes are included to get an import ready fbx file.

The individual steps of the main tool can be followed with the sub-scripts for changing the mesh resolution, checking double bone names, for renaming the nodes and for quickly exporting an fbx file with proper preselected options.

There are also two other useful tools that are not included in the universal script. On the one hand a script to have all the bone names listed, for example to create an overview in a spreadsheet program to rename the bones manually and on the other hand a tool to adjust the skeleton to a morphed mesh if necessary.

There is also an extensive  step-by-step documentation (available via DAZ 3D) and a video tutorial . This help section deals with following topics: How to use the scripts? How to export and import character and clothing to Unreal Engine? How to retarget the skeleton and animations? How to assign and animate clothing from DAZ 3D to a player character with Unreal Engine Blue-Prints? - and much more (How to rename bones manually? How to avoid poking through of textures and meshes?).

Functionality of all scripts:

The main script changes the resolution in base resolution, checks the selected item for duplicate bone names, renames all nodes (from all genesis characters) and labels, saves a .fbx (2012) file ready for import in Unreal Engine.

Subscript 1 is just a short cut to change the mesh resolution to "Base Resolution" to decrease the number of polygons

Subscript No. 2 renames all nodes and node labels of the selected character or clothing according to the Unreal Mannequin

Subscript No. 3 exports the selected item with preselected options as .fbx file

Additional scripts

This subscript is a short cut to adjust the rigging of the selected character. Use it for the main character only after applying morphs.

This subscript checks the selected item downwards the node tree for duplicate bone names.

This subscript shows a list of all node names (not labels) of the selected item. You can copy that list for further use.