Actual COGS and Production Variances to COPA (KE27)

Dear all,
if the COGS is revaluated with the ML (revaluation of consumption)
if the COGS is mapped as a dedicated value field in COPA
if the COGS @ actual is passed to the COPA (KE27)
Hence is no longer needed to settle the production order variances to COPA!???
Thanks

Hello Francesco,
Yes. Very True.
Actual Costing will roll up the Cost for every next level. Without ML, the entry normally posted to FI when we run settlement.
Dr/Cr. Production Variance
Cr/Dr. COGM
This is where it remains for information, since Both GL accounts belongs to P & L.
When ML is activated, the variance is added to the next level of the product. Here , if we observe, settlement of variance neither impacted FI, When there is no ML Activation, nor impacted FI when ML is activated.

Similar Messages

Transfering Production variances to COPA

Hi,
I have doubts about transferring Production variances to COPA.
Will this functionality work both for settlement of variances to GL Variances Account and at the same time for settlement of variances to COPA?
From my experience with cost centers and internal orders, I know that if I want to settle an Internal order both to COPA char and to GL Account, I have to make 100% overhead for the costs gathered on IO. Then I can do the settlement in both directions.
Could you please explain to me the case of Production order variances settlement? I need to have them both on GL accounts and in COPA.
Best wishes,
Karol

Hi
At the time of settlement of production orders, FI entry also passed as well as variances are also settled to COPA
In FI, variances will be debited (assuming production order debit is more than what it is settled to Inventory at Std cost) and Inventory changes account is credited.
In COPA, depending on the variance categories like Price, qty and their assignment to value fields, this amount is transferred.
For eg, if prodn order actual costs is say 12000 and is settled to Inventory is 10000 (at std cost), and the difference is 2000 and if this difference is due to Price (800) and qty (1200).
Hope this is useful
S Jayaram

Production variance in COPA

Hi All,
We are settling production variances to COPA and We have 3 values fields in COPA,Material Variance,production labor variance and Other variance.
Variance categories are mapped to material, labor variance and others value fields.but i dont see any labor variances in Variance value field.i have reviewed and this is becuase of Variance categories.which are not one to one mapping to value fields.
we have 9 Variance categories mapped to 3 value fields.
client requirement is labor variances to settled to Variance value field,material variance to Material value field and Overhead and other variances to settlement others value field.is this possible?if yes.how can i do this?
Any help is appreciated.
Thanks,
Anusha

Hi,
As explained earlier by other forum colleagues,variances captured at production can be assigned to COPA under value field.This assignment is happening through PA transfer structure for variance settlement.
Normally this can be defined broadly into 2 categories : 1.Cost element and 2.Variance categories.
After looking at your requirement,your main interest is in cost element based production variance push to COPA for reporting.i.e.Labor variance.
Production order shows this variance under secondary cost element labor and difference between target/actual.COPA transfer structure doesn't push 2 seprate values (target/actual) ,whereas only delta gets posted.
I feel your requirement is not possible through PA transfer structure.
I would suggest,you push cost center specific labor expenses under new value field,capture cost component wise break up of standard cost udner different value field.
Comparision of cost center expense and labor part of standard cost will provide you expected value.
I know this complex thing to do,so discuss with client do they really want from COPA?
Same reporting they can get from cost cente i.e.expense posted(labor ) and absorbed on product under secondary cost element.
regards,ashok

Production Variances in COPA CO-PA

Hi Gurus
Production variances are genrated in COPA at the time of Prod Order Settlement.How can we display these in COPA reports apportioned according to Products
If not what is the best practice to present Production Variances in COPA reports

Hi,
The production variances flows to copa by creating PA transfer structre in OKOA. their you have to assign value fields to variance categories.after creation of pa transfer str u have to assign it in u r settlement profile.
Thank u
Srinivas

Settle Production Variances to COPA- Cost elements and Value fields

Dear All,
I know this question has been discussed in the past, but I have one specific doubt regarding this topic.:
When assigning cost elements to variance categories in t-code KEI1, how do we figure out what combination of cost elements (in the top half of the screen) constitute Input Price Variance, Scrap variance etc (in the bottom half of the screen)? I know the net of the postings on those cost elements tells us what variances we are looking it, but how do we get the cost elements (group) for let's say, 'Input/Output Quanity Varinace or 'Lot size Variance' ?
Or is this a futile exercise? May be I should just create three types of variances: Labor, Machine and Overhead. And I know what cost elements (net of the postings) would, in total, make up the $ variance in each of those categories. I can then use them in my report painter reports.
Please help clear the fog for me.
Ajay?
Thanks a lot,
Deepak

Hi Deepak,
Welcome to SDN!!
There are 2 ways of updating variances in COPA... I Prefer the 2nd option always...
1. Category wise variances (Input Prc, Usage var, etc) - Here, create a Cost ele group, where in you include all the Cost elements that can be posted to the Prod orders
For the sake of simplicity, you can include Cost elements 1 to 99999999 in the Cost element group...
2. Cost Comp Structure wise variances -
a. Create as many assignment lines in PA Trf Structure as in your Cost Comp Str...
Eg: If your Cost Comp Str in OKTZ has Raw Mat, Labor, Overhead - Create 3 Assignments in PA Trf Structure..
b. Assign the same cost elements in the SOURCE as in the Cost Comp Str
c. Choose the radio button "Costs/Revenues" in your assignment line, instead of " Variance on Production orders"
d. Assign each Assignment line to a separate Value Field
br, Ajay M

Activity variance and production variance seperate in COPA

Dear experts,
My client wanted to break production variance(ko88 in two parts in COPA reports
Total material variance
Total Activity variance
What i am thinking- In PA transfer structure of Production order.I will create four assignements
1)Material price variance-Only RM cost element(Cost element Group)-Price variance category-Material Variance(value field)
2)Material QTY variance-Only RM cost element(Cost element Group)-Qty variance category-Material Variance(value field)
So both assignment linked to material variance value fields.
same way for activity
1)Activity price variance-Only Activity cost element with 43 categoryt(Cost element Group)-Price variance category-Activity Variance(value field)
2)Activity QTY variance-Only Activity cost element with 43 category(Cost element Group)-Qty variance-category-Activity Variance(value field)
So both assignment linked to activity variance value fields.
Is it works for the above requirements or I will face any technical difficulties.
regards
RR

Hi
For sure, it will work....
Another approach can be to update the variance as per cost component structure instead of variance categories in COPA.... Stil the category wise variances can be seen in Other CO reports like Co03 / KKBC_HOE/KKO0 reports
br, Ajay M

Product Variances in COPA for SFG

Hi Freinds,
I am facing a issue relating to production variances arising from settlement of production order for SFG.
As SFG is not sold in my case and is being used for producing 2-3 types of Finished goods, therefore client wants that the production variance of SFG should be allocated to the FG's based on Sales Quantity.
However as all production variances are being settled to COPA, SFG production variannce are also coming to COPA, now I am not able to fine in COPA if there is anything to support this.
Thanks

Hi
The answer to your question is both YES & NO
It is possible to allocate SFG variances upon FG using top down distribution in COPA (KE28)... However, for that, you should have "Some thing in Common"
"Some thing in Common" means - Your SFG and FG should have a relation in SAP where by you can identify that they co-relate.. In one of our clients, we set up the system in such a way that the related SFG and FG shared the same material group...
So, while distributing in COPA (Top Down Dist), we specified that Variances Pertaining to Mat Type = HALB & Mat Group= XX should be allocated to Mat Type = FERT and Mat Group = XX...
Do you such a co-relation established in your system?
Regards
Ajay M

Inter company COGS and Cost Components in COPA

Looked at so many threads but couldn't find a proper answer.
Scenario: Company B in Canada books a sales order, delivering from a Plant in Company A in US. US bills Canada at Cost + Mark up.
In US:
On Goods issue COGS is booked based on std in US (say $10)
On Inter company billing - (Cost + 20% mark up) Inter company receivable is $12, this triggers a payable on Canada side.
In Canada:
We can have $12 booked as COGS when Payable entry is created in Canada through IDOC. so Accounting is OK.
How can I have this COGS of $12 posted in COPA ? Somewhere I read to use two condition types for VPRS, but unfortunately we cant do that as we have revenue recognition activated. only VPRS condition values comes through revenue recognition lines.
Since Delivering plant in US has a Standard cost of $10, VPRS is $10 in sales order and COPA gets the cost components from US plant, which is not correct. How can I have the mark up of $2 reflected in Cost components in COPA ?.
Assuming that I create a standard Cost estimate in a virtual Plant in Canada for $12 with two cost components for $10 and $2. Is it possible to manipulate VPRS on sales order to point to standard cost from this virtual plant and create a costing key to bring the cost split from this virtual plant into COPA. Has anybody tried this ?
Thanks in advance.
Krishna

Hi Krishna
1. Does this material always necessitates a supply from US company??
If yes, then your task is easy.. Create a Costing Key and assign to such materials in KE4H... In this Costing Key, do not tick the radio button "Use Line Item Plant as Cost estimate Plant".... Instead, You can specify the default PLANT to be used for reading the Cost Estimates in the field "Specify Cost estimate PLant"
You can use the above solution in case you go with Virtual Plant also
2. Are you saying that the VPRS in Sales order punched in Canadian comp code is 10 USD because the Delivery Plant is in US comp code?
I dont know how does Revenue recog behave in your case and when does VPRS (COGS) flow to COPA.... As you said, VPRS gets the feed from RR, so will manually manipulating the VPRS in sales order help you??
Anyways, the 2nd solution is as below... Few companies have used it
There is an output type in SD called RD04... I may not be fully right here, you can take it as RD0*... Ask your SD guy to identify the right output type
Using this, When you do the PGI in Canadian Comp code,
................. All this happens in background automatically...............
you can create a Virtual STO on USA Comp code....
USA does PGI and the stock virtually comes in Canadian Comp code
Then PGI happens from Canadian Comp code
................. All this happens in background automatically...............
This is a change in your process... The delivery plant for all practical purposes becomes Canadian Plant (only on paper)... Your Physical process can continnue as Delivery from USA...
This solution was adopted when both the companies were in same country.... Check with your business how far is it possibie for you
3. Last option would be to use valuation exit COPA0002.... I dont know how you would use it considering you have RR in place....
Be very careful in doing this
br // Ajay M

Hi production variance

hi
help me on report
report for displaying actual start date,finish date,planned quantity,actual quantity and production variance.

Hi,
In OBYC you have to maintain gl account for production variance in PRD Transaction event key. If you want this field is to flow to COPA Then in PA Transfer structure you have to maintain allocation structure with this value field assignment.
Regards,
Sreekanth

COPA Configuration for settlement of Production Variances

Hi,
Can anybody explain me detail configuration steps required to settle production variances to COPA in case of Make to Stock Scenario.
Helpful answers will be rewarded with points.
Regards
Milind Nair

Hi
These are broadly the requirements for settling production variances:
1.) The production variances first need to be calculated in CO-PC.
2. Your PA transfer structure must contain assignments of variance categories to COPA value fields.
3. In the settlement profile, you define the variances to be settled and profitability segments should be a valid receiver.
4. The settlement rule to profitability segments is created automatically based on the information available in the production order (product, product group, plant and so on).
5. You must have maintained number ranges for record type "C".
6. The desired form of Profitability Analysis (costing based) must be active in the relevant controlling area.
Hope this is useful
S Jayaram

Production variance issue

Hi experts,
Regarding to one production order, production variance happened for the amount 743,517.67. But in KE30(CO-PA report) it is showing only 641,843.67. For the balance amount 101,674, COPA document has not been generated. Generally at the time of settlement, for each line item of production variance, two COPA documents will generate, i.e one is production variance (statistical) with record type "B" and second one is with production variance with record type "C". Here only one COPA doc with record type B is generated and other one with record type "C" is not generated. Hence it is showing difference with G/L balance. How to solve this issue?
Regards
Jay

Hi Jay Jay,
1. check the settings of Settlement Profile assigned to your production order type, to make sure the settlement profile has been assigned the correct PA transfer structure
2. check the PA trasnfer structure, to make sure the source and value fields are correctly assgined (tc: KEI1)
3. check the valuation strategy, to make sure the point of valuation, record type and plan version are assgined to the valuation strategy (tc: KE4U)
Wish helpful to you

Production Variance settlement to COPA

Hi Experts,
Here I have scenario regarding the production variance.
production requirement is 100 units
but the actual produced quantity is 110 units.
here we have a production variance of 10 units
Which is reflecting the report as following
My COGS is 10000 Rs
Split of the COGS
input material is 11000 Rs
labour is 200 Rs
machine is 300 Rs
Here my COGS posted to GL account is less than the actual production, which is posted as per the sales order
Here where do i get the production variance, how to find out the quantiy variance and price
Please help
Regards,
Ram

Hi
Execute KKS1 / 2.. After that settle the prod order to COPA from KO88....
you can see all the categories of variance in CO03...Menu Go to > Costs > Analysis and change the layout and include all the categories of variances
Br, Ajay M

Production Variances of semifinished goods in COPA

Hi,
We are using Costing based COPA, which is updated at the time of billing.
The production variances are posted to COPA when the settlement of the production orders are done.
The production variances if brought within the purview of COPA report (based on sales), the plan vs actuals can be compared. However, in case of actuals, the production variances would appear only to the extent of tha particular product sold (that too, to the extent of qty produced and not qty sold)..
I have two issues:
1. Whether system can explode the BOM and bring in the production variances of semi-finished goods into the total production variances, if I drill down only on the Finished product sold. The total actual cost would include the variances of relevant SFG also. Is this possible, if so how?
2. Whether, by bringing production qty and sales qty, the proportionate prod variances be calculated (total prod var * sales qty / prod qty). This can surely be done by inserting formulae. But is this justified from business point of view?
Please help me resolving this issue..
Edited by: Swapvik on Mar 17, 2009 7:11 AM

Hi Swapvik,
Issue No.1:
When you are using only Standard Costing in CO-PC, variances will not get rolled-up to the next level. Only costs get rolled-up. As per your requirement, when you see the report in COPA, when you see the details of FG and you want to see the variances of it's SFG also, this would be possible only if you have activated Material Ledger. If ML is active, variances also get rolled-up along with costs.
Issue No.2:
The ultimate purpose of bringing Variances into COPA and making part of them in a report is to consider COGM subject to the variances. Though it is not 100% justified, it gives you the most appropriate analysis compared to where you don't consier the variances at all. If you don't consider variances there, that means, you are considering only COGM and not taking the effect of variances, which will definitely not a correct picture of Profitability.
Pls revert back for further explanation...
Srikanth Munnaluri

Actual cost of product in COPA

Dear all,
I am relatively new to COPA functionality.
The requirement is that actual cost of product should be reflected in COPA and not the planned.
Kindly give me the background also, as in the integration of COPC and COPA.
Thanks in advance

Hi,
Sudhakar is completely right in his comments. But, I would not just accept that actual costing is not active, so you have to find a solution without it. Your requirement is a good reason to activate actal costing, and calls for it.
The way SAP foresees to bring actual costs into CO-PA would be:
Activate material ledger / actual costing
[http://help.sap.com/saphelp_erp60_sp/helpdata/en/a5/320e28d56c11d295c200a0c930328a/frameset.htm]
Calculate periodical actual prodcut costs at period end
[http://help.sap.com/saphelp_erp60_sp/helpdata/en/ec/f835d7f08311d185810000e8a4bacc/frameset.htm]
Revalue CO-PA at actual costs with KE27
[http://help.sap.com/saphelp_erp60_sp/helpdata/en/f5/0f0739edfcb03ae10000000a11402f/frameset.htm]
[http://help.sap.com/saphelp_erp60_sp/helpdata/en/7a/4c39be4a0111d1894c0000e829fbbd/frameset.htm]
That brings you a completely integrated and accurate solution for actual product costs in CO-PA
best regards,
Udo

Production Order : Split of variance in COPA

Hi,
I am testing the variance flow to COPA in production order settlement scenario..
Below is the cost trend of the production order.
Below is the resulting copa document whic is generated from settlement
Below are the cost element and value field assignments.(in PA transfer structure configuration)
I want to know, how the variance split happened in the COPA document. Because in cost trend , the entire variance is during GI stage.
SO this pertains to the GL account 50000 , as seen in the cost trend. How did the system split the amount in COPA document
Regards
SR

Dear Rajan,
Please find the following Link:
Transferring Production Variances:
Transferring Production Variances - Profitability Analysis (COPA) - SAP Library
Regards,
Pavan Kumar Arvapally

Actual COGS and Production Variances to COPA (KE27)

Similar Messages

Maybe you are looking for