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.
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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

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  • Product Variances in COPA for SFG

    Hi Freinds,
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    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.
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    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"
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    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...
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  • Production Variance settlement to COPA

    Hi Experts,
    Here I have scenario regarding the production variance.
    production requirement is 100 units
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    here we have a production variance of 10 units
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    My COGS is 10000 Rs
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    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
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    Regards,
    Ram

    Hi
    Execute KKS1 / 2.. After that settle the prod order to COPA from KO88....
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  • 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)..
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    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?
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    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.
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    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

  • 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.
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    Hope this is useful
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  • 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.
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    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?
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    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.
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    I know this complex thing to do,so discuss with client do they really want from COPA?
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    regards,ashok

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