Production order variance calculation RKKKS000

Hi Gurus,
we have a strange issue, where system is taking more than 28 hours to calculate variances by using program RKKKS000. because of this business en-countering issues for month end processes, I came to know one of the program which has the ability to select order type and number range KKS1 RKKKS1N0.
can this job be used in 4.7 version if so how to find the order types and muber range for selection. if business wants to use Existing program RKKKS000 is there any way to reduce Job performance (less than 10 hours).
Thanks,
Sree

Hi,
set status DLFL for the orders that should not be processed anymore, thats the best way to reduce the variance calculation runtime.
Check SAPNET note 393896 for other performance tips (parallel processing,...)
BR Christian

Similar Messages

Production Order Variance not posting to COPA

Hi,
I am hoping someone can help.
We settle our production order variances to COPA. - usually without any problem. The production orders settle to both Material (Mat) and PSG
However this month we had a situation where for 2 order there was no settlement to COPA for the variance.
For these 2 production orders there was no settlement rule to PSG in the master data so this obviously explains why it didnt create a settlement document but my dilemma is understanding why there is no PSG settlement rule.
Through testing it appears that the PSG settlement rule is not created at the time of production order creation at all but seems to be automatically created after the execution of KKS2 and CO88.
The 2 orders that I had issue with this month were for a new material and I am able to recreate this probelm for any new Production order against this new material. So I suspect that there is something specific to this material that is prveventing the PSG settlement rule from being created.
But this is where I am stuck! I can't find any setting in material master or other area that would seem to impact this.
Any help appreciated,
Thanks,
Tracee

Hi,
First you can settle these 2 orders individually with using KO88 Transaction code and see if there is any error. Also check the settlement profile of these 2 production orders.there you can check the " variances to costing-based PA" tick is there or not.If tick is not selected there,you can select the check box and run variance calculation (KKS2) and do the settlement for these 2 production orders (KO88).
I hope this wil help you and let me know if you have any queries.
Regards,
Puri.

Production Order Variance Configuration

Hi Gurus,
Would you please help me with configuring the Production order variances in product costing. I would really aapreciate if you can send me some documentation. My scenario is to configure the automatic calculation of production order variance and its settlement to Copa. I would really appreciate an early response. If you have any documentations please send it to kamkhan.sap at gmail.
Thanks

Hi MKR,
You can calculate the following variances in the R/3 system:
Planning variances
Production variances
Production variance of the period
Total variance
You control the variance calculation process by specifying a particular target cost version.
In make-to-stock production, standard cost is calculated in the standard cost estimate for the material. In sales-order-related production with a valuated sales order stock, standard cost is determined using a predefined valuation strategy.
During production, actual costs are collected on the order (product cost collector or manufacturing order). The actual costs that are compared with the target costs are reduced by the work in process and scrap variances (the result is called the net actual cost).
You can determine the production variances of the period by comparing an alternative material cost estimate with the (net) actual costs. This alternative material cost estimate can be the modified standard cost estimate or the current cost estimate, for example.
Total Variance
The total variance is the only variance that is relevant to settlement. This means that only the variance categories of target cost version 0 can be transferred to Profitability Analysis (CO-PA).
The total variance is the difference between the actual costs debited to the order and the costs credited to the order due to deliveries to stock. The difference between the debit and credit of the order is passed to Financial Accounting (FI) and Profit Center Accounting (EC-PCA) when the order is settled.
The target costs for the total variance are calculated as follows:
In make-to-stock production, the target costs are calculated using the standard cost estimate for the material and the quantity delivered to stock.
In sales-order-related production with a valuated sales order stock, the target costs are calculated using the cost estimate relevant to the valuation of the sales order stock (such as a sales order cost estimate or a standard cost estimate for the manufacturing order) and the quantity delivered to stock.
For the total variance, the control costs are equivalent to the following:
In Product Cost by Order, the control costs are the actual costs less the scrap variances.
In Product Cost by Period, the control costs are the actual costs less the work in process and scrap variances.
The variance calculation process compares the itemization of the cost estimate on which the calculation of target costs is based with the line items in your actuals.
The itemization contains detailed information based on the costing lot size, such as the materials to be used and the activities to be performed.
When you release a standard cost estimate for a material, the price calculated therein becomes the standard price in the material master record of the material being manufactured. In the standard system, an itemization is always created for standard cost estimates for materials.
The following variance categories can be reported for the total variance:
Input price variance
Resource-usage variance
Input quantity variance
Remaining input variance
Scrap variance
Mixed-price variance
Output price variance
Lot size variance
Remaining variance
When you settle, you can transfer the total variance to Profitability Analysis (CO-PA) broken down into variance categories.
In CO-PA, the standard cost of goods manufactured for the product is compared with the revenues to calculate an initial contribution margin for the period. The variances between actual cost and standard cost of goods manufactured can be used to calculate a second contribution margin for the period.
When you calculate the variances, you can transfer the difference between the debit and credit to CO-PA only as a total.
You calculate the total variance with target cost version 0.
Hope this helps. Please assign points and let me know if you need more information.
Rgds
Manish

Production order variances

Hi All,
I am not able to see any value for Production order variances in PA report (T-code KE30).
Why it is showing 0 value for PO variances in PA report?
Thanks in advance

you have to create pa transfer stacture that u have to assign to
setelement profile that u have to assign to order types
in pa transfer stacture u have to assign production verieance to
co-pa value fields the above things u have to do configration and
u have to settele the production order then u will get verieance in
co-pa report
regards
demudu molli

How to settle the production order variance to 3 GL account

dear all
i met a problem in the project ,the customer need see the production order variance category detail for (material,routine,overhead variance) in FI report ,so it need to settle the variance to at least 3 GL account
i don't know how to configure it ,i try to use result analyse like wip ,but go failed
do you have some suggestion
thank you

Hi ,
Through Standard SAP .. the same it not possible . Standard SAP will post the differences to one GL account ..The variance amount is not segregated..
The way out is to use report KKO0 .( Product Costing Drill Down Reports ) in CO . There are many reports available .. and you can compute the difference in CO Reports and manually make an entry in FI by manually reversing the original variance account and posting it to cost component wise variance accounts ..
To use the KKO0 report.. please perform the following tasks :-
1. Assign cost component structure in transaction OKN0 ( Date Extraction/Product Drill Down) tab.
2. Product Group Type = Material group..
3. Run KKRV after period end every month to collect the data for drill down reporting..
Please revert back for any further clarifications
Regards
Sarada
Sarada

Basic question on settlment of production order variance to FI

Hi Experts,
I know im asking a dumb question. I really understood the concept of variance generated in production order, to say it in simple words the difference between debits and credits. But when it comes back to FI im confused and lost, when we settle the production order variance, the following entry is posted.
Production variance a/c 100
COGM var a/c or Mfg ouput var a/c 100
Now my question here is, there is a debit and credit of variance for 100, which is equal to zero, so there is no net impact of variance in my P&L, the variance is not accounted in FI at all. How is the production order variance accounted in FI?
Could somebody please answer my question or provide me with some clarification. I know either i would have misunderstood the concept or something is wrong or may be i need to look over the entire postings.
appreciate for your time spent.
Thanks in advance,
Best Regards,
sk

Hi SK,
The net impact of settlement of production order on P & L is zero. The reason is actual consumption to that particular production order is booked to P & L at the moment the activities are confirmed over that order.
Variance is difference between Std cost of Goods recepit and actual consumption. Suppose actual material consumption is 100 Rs and your std cost of goods with which production order is credited is Rs 90. The diff is Rs 10. Now if you again book this 10 Rs to P & L as negative being excess and giving second effect NOT to P & L, you will not come to know what is actual consumption and the picture will be wrong. There will be mismatch between Actual physical consumption and what is booked to P & L.Hence the debit and credit is given to P & L to nullify the effect of variance.
Truely speaking, the variance account is to be observed to verify the actual consumption against standards and to correct BOM and Routing and/or to take necessary action for excess or less consumption.
Hope the matter is clear.
Makrand

Production order variance in PCA

Hi All,
Production order variances In PCA both entries are posted PRD and AUA, it is netting off and Profit center balance is zero.
when i analyze PCA,my product line profit center is showing 0(Zero) balance for production order variance entry.
we want to upload PCA balances to consolidation systems(Hyperion)by profit center totals.in this case all my variances are zero.how can i analyze this entries in PCA and Hyperion.?please help me.
Thanks,
Anusha

Dear Anusha,
Both the accounts in the accounting document for settlement of variances, nullify each other in Finance. The variances are only for information and analysis for controlling variances. Hence, you need to take both the accounts in your consolidation.
Trust this helps much and if so, pl assign rewards!
Regards,
Ashok SINGH

Production order variance and purchase variance go to one business area.

Hi Experts,
I have a issue while Purchase order we have ordered 3000 qty and while goods receipt we posted 300000 qty and same was issed for prodction order instead of 3000 and got variance. Then afterward purchase order qty was rectified with correct qty then purchase variance happed. The production order variance is getting offsetting by purchase order variance and no effect on gross profit.
Now my question is production variance is going one business area and purchase variance is going another business area. It should not be like that. Both should be showed only one business area. Please provide solution.
Thanks in advance.
Balu

Dear Balu,
You can try OKB9 wherein you need to select the indicator 'BAlrn' against the cost elements of Purchase price difference account. Then select the line item and click the folder 'Detail for business area/valuation area' and input your business area. Thereby you can capture this variance in same business area, even if any other business area is entered or derived differently.
Further, if your production variance account is also a cost element, you can direct the postings to the same business area, we can do the same as explained above. If not, we have to think of another configuration or work around. Pl let me know.
Trust this helps much!
Regards,
Ashok SINGH

How to extract Production Order Variance details to SAP BW?

Dear all,
I have a requirement to create SAP BW reports to show Production Order Variances in SAP BW.
Need to display Variances by Order, by Cost elements (components).
I am checking transaction KKS1 in SAP ECC 6.0, as the same data is required in BW. But I am trying to find out from where (what tables) can I pick this data, so I can load it to BW and use.
Any details will be very helpful.
regards,
Srikar

Hi,
You can check exsiting InfoCubes in the link here:
http://help.sap.com/saphelp_nw70/helpdata/en/81/d7153c4eb5d82ce10000000a114084/frameset.htm
Regards,
Eli

Production order variance settlement to cost centers/internal order

Hi,
I am looking to configure the settlement of production order variances to cost centers/internal order. Is there a way to do this in the settlement profile. Would appreciate your help.
Thank you,
Ram

OKO7 will allow you to configure the Settlement Profile by selecting valid receivers.
This should be done with/or by FICO.
Then test, test, test
award points if helpful
Althea

Variances for the Previous Period- Production Order Variances

Dear All
I am not able to settle the variances of Previous Period in Ko88.
The following steps I have done for the settling the variances
1. KKS2- Production Order
2. Ko88- Settlement of Variances
If i settle the variances production order variances it is increase the stock and in the increase in the profit and loss account
I need a suggestion there should not be any impact on the either in the profit and loss account and stock
Please advise me
Regards
Ramesh

Dear Vimal
I would like to explain further more on this area.
1. For V Material Item - When there is no stock it will be posted to Profit and Loss account
2. For V Material Item- When there is a stock it will be posted to Balance sheet acccount- My question whether it can be posted to Profit and Loss account. When there is a stock - What is the procedure to be followed.
In further to that Settlement can be done only if the order is completed. settlement cannot be done if the order is not completed.
I need to understand
1. Whether V Material item available stock can be posted to Profit and Loss account.
2. Whether this is based on Order completion.
Thanks for your reply.
Regards
Ramesh

Production order variances due to missing usages of overheads

Hi Team
We have noticed production order variances due to missing usages of overheads (labour, personnel, consumables, scrap). Where do those kind of variances come from and how they can be prevented/corrected.
Br, Kiran Unde

Hi Kiran,
This is because those Activity Types are not entered during Confirmations for Production Order. To correct those field, you need to perform Confirmation and enter the values for those Activities.
To prevent this in the future and to ensure those fields are entered during confirmation, you can do the following:
Make the system propose values for Activities automatically based on Standard Values.
Go to transaction OPK4
Select appropriate Order Type and Plant
Select tab "Individual Entry of Operation with Initial Screen"
In the "Services" section, tick "Propose"
Make the fields mandatory
Go to transaction CO86
Set related Activity to Confirm fields as mandatory by placing the radio button under "Req" column
Regards,
Julian

Product costing - Variance calculation, Information system,

Hi,
I have an issue reconciling variances in product costing when I run S_ALR_87013139 - Cumulative. For instance I am getting results like below
Tgt (Dts) Actual (Dbts) Scrap Variance WIP Control Costs
33946 183020 0 27248 -95034 0
I was expecting
Variance = (Actual Debits - WIP credited) - Target Debits.
But it is not so. Am I missing something here
Would also appreciate if someone could tell
1. What does the target cost mean/how is it different from planned costs.
2. When is the target cost calculated? Is it only after the order is complete and variance calculation in KKS2. I also fing that whenever a production order is created I dont get target costs. Only planned costs are there.
Thanks for your help.
Ram

Hi Ram
Following are explanations for clarifications u asked for
1) Target costs = Actual qty delivered X standard costs ( as per standard cost estimate for the material). This means standard costs for actual goods delivered to stock. Planned costs means standard cost for planned qty of production order
2) Variances are calculated if the status of the order is either DLV or Teco and if material is issued and activities are confirmed. WIP is cancelled and variances are calculated
3) When u create production order - system only calculated planned costs of the order for planned quantities. Target costs are calculated only when goods are delivered to stock for the order either partially or full. Even if one qty is delivered to stock target costs gets calculated
Hope the above clarifies and do your checks with above
Pls assign points for the above clarifications provided

Production order Variance caculation(KKS1)

I run tcode : kks1 , system generate error message(KV 192) : Cannot calculate scrap variances.
But we do not have scrap movement in production order , could this error message be ignored by IMG config?Anyone can tell me how to do?

Hi,
If you choose costing version in variance calculation 0, then system calculates variance based on std. cost est. and actual cost. if you select 1, then system calculates variance based on planned cost and actual cost.
Go to customization settings in variance analysis calculation and change the costing version from 0 to 1.
Please refer this thread also,
Re: TARGET COST ZERO
Regards,
R.Brahmankar
Edited by: R Brahmankar on Sep 5, 2008 10:23 AM

Production order variance cost

Hi,
I know that Plan Cost is caculated based on value and
seconds which is maintained in KP26 transaction. Workcenter
attached to Routing.
I want to know that how actual cost or calculated ?
In the prodcution order CO03> Cost > Analyses, Plan
cost is 30 and actual cost is 70 and variance updated as 40.
The reason i heard that for higher actual cost captured in
production, while doing confirmation they booked more time.
But i have seen transaction co15, there is no such field in
that.
Could anybody explain where i can see how much time
booked for that operation in production order ?
Regards,
RRS.

Hi,
Also check with COOIS report.
List = confirmation
Profile = Std profile
Inside the report select the Field like "Activity to confirm", "unit /activity"
This will give u operation wise , Confirmed actual activity value for Order
Pradeep

Production order variance calculation RKKKS000

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