COPA Production Variances
Hi,
Would Production variance GL account be a cost element for the purpose of flowing data to COPA?
If you have activated Costing based COPA then NO
If you have activated Account based COPA then YES
Enjoy.
Venkat.
Similar Messages
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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)..
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 AMHi 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 -
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,
KarolHi
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 -
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.
ThanksHi
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 -
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,
AnushaHi,
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 -
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 NairHi
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 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 reportsHi,
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 -
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
RRHi
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 -
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!???
ThanksHello 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. -
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,
RamHi
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 -
Cost elements set in KEI1 A1 Settle Production Variances?
Dear Experts,
What kinds of cost elements would be set in KEI1 If the PA transfer str. is A1Settle Production Variances?
10 Input price variance
20 Input quantity variance
30 Resource-usage variance
40 Remaining input variance
50 Mixed-price variance
60 Output price variance
70 Lot size-/fixed-cost variance
80 Remaining variance
90 Scrap
Could i say "cost elements that we can see when we do KKS1 variance caluation?
Or else?
Thanks in advance.Hello,
You NEVER assign cost elements to value fields for mapping the settlement in COPA. Instead of that what you do is in the source tab for the line (eg 10 Scrap) select the radio button called ' varainces on production orders' and input the appropriate variance category eg. eg SCRP. In value field tab you would assign the appropriate value field. There is no need to assign cost elements. When you execute variance calculation the information is captured in the following fields and the same flow to COPA when you assign the variance category to value fields.
PRIV Input Price Variance
QTYV Input Quantity Variance
RSUV Resource-Usage Variance
INPV Remaining Input Variance
MXPV Mixed-Price Variance
OPPV Output Price Variance
LSFV Lot Size Variance/Fixed-Cost Variance
REMV Remaining Variance
SCRP Scrap
The variance calculation is not just a simple difference between the cost elements it is also related to quantity as well.
Kind Regards // Shaubhik -
GL assignment for production variance
Hi,
Production variance GL assignment is to GL89961000 and value fields VV455.
Question: Where is the settings (automatic GL booking to GL89961000) for this production variance?
Thanks in advance.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 -
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
JayHi 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 -
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 -
Profit center report picks production variance posting from prev periods
(This is a repost, from a ill-chosen forum)
Guys I am lost
I am running S_ALR_87013340 : profit center Plan Actual comparison report, on a group of profit centers: the total I got is different from the sum of the individual profit centers in the group: the difference being on my production variance account, and a sales posting that relates to the prior period
I had the same issue last month, with the discrep. only being my production variance account.
but I was expecting something of the sort: it was the first time we closed orders, and SAP closed all orders since the implementation, years earlier
What could cause this?
Thanks for your time, again
KR - LoïHi
The Production Variance account is usually not created as a Cost element.. Hence, the PC from the Mat Master is derived into this Line item.... Ideally, the PC from mat master gets copied into the Prod order also... If you change the PC in mat master later on, you can see a mismatch
Whats the situation in your case? The Prod Var account has PC or not or which PC does it have?
Br, Ajay M
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