Production Orders, Varience  & costing

I have many customer that are using SAP production orders with either moving average of FIFO and are surprised by the varience that are created by SAP production orders.  This is not typical of a 'actual' costing system.
When a production order is closed, it will create a Journal entry to a varience account is created for the cost of the material that is in excess of the standard BOM.  Obviously, this can only be calculated when the M.O. is closed.
This method does not support an 'actual' cost company - this is a varience posting. 
It would be better if the over or under cost could be handled in a manner similar to an AP invoice with a changed cost.
In other words.
Change to inventory gl account *   (total on hand for this item  /  units for this production order  OR 1 which ever is greater)
Charge to varience account
Change to inventory GL Account -  ---The remander from the above calculation --- (Change to inventory gl account *   (total on hand for this item  /  units for this production order  OR 1 which ever is greater))
The variance would only be for items that are no longer in inventory.

Hi,
What I meant is,
Planned Start time : 8 AM on 10th Dec,2008
Planned End time :  2PM on the 10th Dec,2008
Actual Start time : 8 AM on 10th Dec,2008
Actual End time  : 6 PM on 10th Dec,2008
Here how will we accout for the 4 hrs.? Client donot want this(due to reasons best known to the client, though this is not advisable).
Best regards,
K.Kumar.

Similar Messages

  • Production order varience analysis

    Hi experts,
                       While doing the production order varience analysis, I was checking the cost analysis in some orders all the data is perfect i.e. material consumption and Machine hour rates but still that order is showing positive varience under *Reciept to orders* Can you please tell me from where this cost is getting captured.

    Narayan,
    It would be good if you can share the screen shot of the cost analysis of order for better understanding of the problem. You can post the screen shot in some of the websites and share that as a link here or else please send me to my mail Id which you can take it from my profile.
    Regards,
    Prasobh

  • CN41N and S_ALR_87013533 report not showing Production order planned cost

    Hi Experts,
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    2. CN41N report and S_ALR87013533 report does not show total value but only picking fixed value.
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    1. CN41N report :
    Above screenshot shows no values in Project plan cost & Order cost column but it shows total cost as a lumpsum on top for project. I need to know how can i get material cost populated here for Project Valuated stock material?
    2. S_ALR_87013533
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    Hi Ashish,
    I doubt whether Item level reporting  in S_ALR... (hierarchy report) is possible or not because I haven't seen item level cost in them only the lump-sum cost because they are summarized at cost object level itself. Navigation path are there which we use to go into details of cost.
    Please check the following links:
    https://scn.sap.com/thread/1743833
    (In the above thread,focus on  Mr. Mohamed Rafi comment.)
    http://scn.sap.com/thread/3530080
    http://scn.sap.com/thread/1311820
    Order cost plan in report CN41N
    Display of plan cost., CN41N | ABAP, SAP, benX AG, benXBrain,&…
    Just an additional pointer ,have a look on your costing variant and variation variant settings for material section.
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  • Material cost in production order plan cost

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    Issue-2
    When i consumed raw material against semi-finished material production order (261-E), system not gnerated any document and material cost not updated either in production order or sales order...
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    Hi
    Issue 1 : Check Whether Standard cost is present for header material of prod order, and under control tab of order costing variant for plan is present.
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  • How to see cost componentwise production order actual cost-not planned cost

    Hi,
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    Hi,
    CO03->Goto-> costs-> Anlysis
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    Regards,
    R.Brahmankar

  • Standard table for production order settlement cost

    Hello,
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    Dear,
    Once you do Production order settlement using T.Code KO88.
    You will find all relevant tables once RKACSHOW is executed for the corresponding object .
    Try the table is COEP
    Thanks,
    MS

  • PCC vs Production Order Based Costing

    Hi,
    Please reply back difference between PCC and Production Order Based Costing.
    Thanks in advance.
    Regards,
    Sameer

    Hi,
    PCC is product cost collector which is  used in mostly REM process.
    1. Here you have to creat the product cost collector mean sthe cost is based on period, when u create PCC you are creating the priliminary cost means the quanity strucure costing considering BOM , activity prize and the cost from costing sheet i.e admin cost, etc .
    2. In product cost collector the the cost of document posted in backflush is posted periodiclly. For that u have to run standard cost run i. CK11N and CK24. monthly.
    3. but in Production oredr or Process order thre is no PCC instaed of PCC the cost is settle with the settlement profile defined in OPL8 i.e order type dependent parameter SPRO.
    4. Each prd ord is REL,CNF and TECO when the status is TECO means the logistic point of view the order is complet now ready to costing .
    5 Then FI consultant settle this order
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  • Production order Target cost Zero - Varience calculation error KV151

    Hi Experts,
    I am having an issue on KKS2 variance calculation, system throwing error KV151 Target cost is 'Zero'
    All pre-requisites are ok including BOM, Rates, Routings etc..
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    Note: Cost Estimat e is for Labor and Overhead only.
    After production order confirmation CO11N, production order Cost analysis displays - Target value ("Zero") and actual value.
    Due to above reason in KSS2 we are unable to calculate variance, system displayed error KV151.
    I cannot settle the production order, guide if I am missing some thing in config. ?
    I appreciate you quick response.
    Thanks,
    RK

    Thanks for your reply Swapvik & Takashi, I have no issues on configuration side very thing looks good.
    Cost estimate - Good
    Variance key - Good
    Production order - FERT (Valuated) - good
    BOM components - UNBW, NLGS only - Good
    Labor rates - good
    Periods - good
    Production order confirmation - Good
    Actual cost - Good
    My Issue is Target cost is zero on cost analysis in CO03 but if I can see target cost in KKBC_ORD report.
    I am unable to calculate variance and settlement.
    I appreciate your response.
    Thanks,
    Raj

  • Releasing of Production Order without Cost-Run

    Dear Sir,
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    Kindly guide us . Full marks are asssured for the suggested solution please .
    Regards
    B Mittal

    Hi,
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  • Error during variance calculation for production order "NO cost estimate "

    hi all,
    I'm gettin this error message while trying to calculate the variance for a production order. error is "No cost estimate for material xxxx for 01.10.2008.
    when i look at material xxx in MM02, under cost estimate for current period there is a value but nothing for previous period. So i'm guessing the the Cost estimate was not run of this material? am i correct here?
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    I tried CK40N and CKN1 but just cant get it to work...
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    Hi Tom
    unfortunately there is no easy way to get a product cost estimate for a past date. One of the reasons for this would be inconsistant product valuation.
    You could in theory create a cost estimate in a current date and use an ABAP or manually adjust the valid from and to dates directly in the tables (e.g. KEKO). To do this in a production environment would be restrictive off course.
    The standard cost estimate is the basis for the target costs so as an alternative you could look to change the configuration of the target cost version in OKV6 to either of the following:
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    Elaine

  • In which table production order planned cost and actual cost i can see?

    Dear PP Guru,s,
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    Regards,
    sree

    Dear,
    Planned and actual costs of prod order from COEP, COSS, COSP  S027 tables
    production order shows the planned cost based on the quantity structure.
    Please refer my reply in this thread for details,
    Re: Actual Halb Material Cost
    Regards,
    R.Brahmankar

  • Material cost charge to Production Order from Cost Center / Work Center.

    In Production Order Environment, is it possible that goods are issued from Storage location to Cost Center / Work Center, and in turn charged to Production Orders.
    Scenario. Transformer Manufacturing.
    Production Order size : 100 Units
    Steel (Kgs) per Transformer : 3 Kgs
    Total Steel required for Production Order: 300 Kgs (100x3)
    In the process of manufacturing of a Transformer Steel or Core winding is the first process step.
    Even though the Steel required for above said Production Order is 300 Kgs, the minimum issuable lot size from stores is 2000 Kgs.
    Is it possible in SAP ECC 6.0 that the Steel of 2000 Kgs is issued to a Cost Center / Work Center, and later charged to production order based on actual Consumption in the said Cost Center / Work Center.
    Regards, Replies and Sugestions shall be appreciated
    Madhu

    Thank you for the reply,
    However, the scenario that i had in mind was a bit different from what you had conceptualized.
    Scenario - These transformers are basically for loading on to Inverters & UPS, The max weight of the transformer range from 15-30 Kgs. and they dont have an external casing of steel as seen on Indian Electricity Board transformers. Multiple production orders are processed at a single time in the Plant as per Customer specifications.
    The general process followed for manufacture is as follows:
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    In the present situation (Non SAP Environment) the entire pallet of Steel is issued to the Core winding department and later the Output is charged to multiple Production Orders, based on the records of the Core winding dept. Since in general the steel content in the FG ranges from 3- 25 Kgs multiple Production Orders can be catered to from one Pallet of Steel.
    2. Core Laithing. The wound cores are laithed so as to make the sides smooth.
    3. Core Annealing u2013 Heat treatment process.
    4. Core Insulation. u2013 Insulation of the annealed cores with insulating material.
    5. Primary Winding. u2013 Copper is wound as per the BOM Specification. The issue like that of Steel also arises in the Copper winding process. Here also the Cooper comes in Spools which far exceed the requirement for any Production Order. The minimum issueable lot for Copper from Stores is one Spool. The current practice followed is that the Cooper is taken in the name of the Copper winding department and later charged to individual Production Orders.
    6. Primary Soldering.
    7. Mid Insulation.
    8. Secondary Winding
    9. Secondary Soldering
    10. Shielding
    11. Final Insulation u2013 Same issue with insulation too, since the insulating material comes in rolls.
    12. Testing.
    13. Potting & Drilling - Process of pouring a chemical compound in the center of the transformer, which helps the transformer to later be loaded on an Inverter. The same issue with like of Steel, Copper & Insulation arises here too, since the chemical compound comes in big containers capable of meeting production requirement for a week.
    14. Packing
    15. Transfer to FG Inventory.
    One of the suggestions was to issue the entire 2000 Kgs to the Production Order and then return 1700 kgs after completion of the Production Order based on actual usage. However, in my opinion this option might not be practicable because, assuming that I get another / multiple Production orders in between the issue of 2000 Kgs and return of 1700 Kgs, issue to the new Production order will not be possible if the stock in stores was only 2000 Kgs initially. In case assuming that the material is available in stores for the next production order, the situation could worsen in case of receipt of multiple production orders.
    Hope, I have explained the scenario & issue being faced.
    Regards
    Madhu

  • Settle part of production order to cost center

    When settling a production order, the balance of some accounts in the production order should be settled to a certain cost center (the rest of the order balance settle to material).  The requirement is to settle the balance amount while settlement rule in a production order only allows settle by percentage or amount.  Please let me know if there is any solution.  Thanks~

    Hi Sharon
    I dont know if this would be possbile because a Prod Order created for a Valuated Mat will always have MAT as settlement receiver
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    1. In your Settlement Profile - Assign a Source Structure
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    10 - Include all the Cost elements which should settle to Cost Center... Specify
    20 - All others which should settle to MAT
    3. In your allocation structure, allow both CTR/MAT as allowed receivers
    4. While creating settlement rule in Prod Order - Create 2 settlement rules
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    b. In 2nd settlement rule, this will be auto generated by the system to MAT... Choose the Source Str Assgn 20 here
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  • MTO Production order planned cost

    Hello
    We have a MTO production order.Need to know plan cost of order.But unable to get in COEP or other csoting tables.Any other table where we can get the data.
    Thaks in advance.

    Hi,
    Check COSP table it is for planned cost.
    Regards,
    Sreekanth

  • In production order the cost analysis report  is not displaying correct

    Hi,
       when i create production order and do some posting activities i could not see the GR  cost row  details in the cost trend report in the production order.
    i could see the goods issue, confirmations and overhead rows segments in it. but i could not see the goods receipt tab in the <b>cost trend report .</b> where the implication lies can u suggest.
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    madan

    Hi,
    In t.code oplr (order type dependent parameters) check in the controlling tab if you have given the costing variant as PPP2 for the Actual cost calculation & PPP1 for the planned cost for your order type.
    Regards,
    SDs

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