Is calculation of variance in Process Order Mandatory

Dear PP Gurus,
I would like to know is Variance Calculation is Mandatory Befor Performing Settlement for Process Orders ,Once the Order is Technically Completed.What implications will be  there if I perform Settlement Transaction(KO88) Directly with out Perfoming Variance Calculation.
Regards
Varma

as per my understanding,Varinace key  in Material masster costing view controls whether order has to undergo Variance calcualtion or not before Settlement.
If Varinace key is maintained the variance is calcualted between the Target and actual paramentes.
If not, still the varince is  seen in the cost analysis report.but against the Planned and actual parameters.
However you can do the Settlement without Varinace calculation.
Regards
Ratan

Similar Messages

  • Remaining Variance on Process Order

    Analysis of variances on a process order results in the difference being calculated as a Remaining Variance (Only remaining var. in version 0 - no target costs, message KV 151).
    I want to include this variance in a report.
    In which table can I find this data?
    Thanks

    Ttry COSS and COSP
    table with value type 31 which is variance value type...
    Do not forget to save the variance results...

  • Requirement calculation of material in process order

    Dear Friends,
    we have one raw material whose base unit of measure is maintained as CAR (cartons) and the unit of issue is in EA in material master.
    now, when we create the process order of Header material, the system calculates the requirement qty of raw material in EA and this is properly shown when i click the material icon for the details of componen.t
    but when i click the icon of material availability check the system gives the message as missing part list even if the current stock fulfills the reqmt. qty.
    hereafter when we click the missing part list overview the reqmt. qty is calculated as per the base unit i.e. in cartons , it rounds of the figure obtained and re-converts to the unit of issue as in EA.
    for eg.
    one carton contains 1472 pcs EA
    required qty of x material as per process order is 16000 EA ,
    when we click on materials icon it shows the figure as 16000 EA correctly,
    but now when we check for material availability and seee the missing parts overview , here the requirement qty is shown as 16192,
    system calculates as follows:- 16000/1472 = 10.869 cartons,
    here it rounds off to 11 cartons and equivalent of 11 cartons is 16192 EA.
    so if, say for e.g. my stock of raw mat. is 16000 EA which can fulfill my reqmnt as per BOM but due to the above calculation shown the release of order is rejected.
    please suggest for the issue to get resolve.
    thnx in advance
    rgds
    Amitabh Rathod

    Dear Amithab,
    Frist thing is always ur base unit of measure should be the minimum one. in ur case u hae done ulta.your BUM sholud be EA and yor altrnative unit of measure should be CAR this u define in material master basic data view. at this piont of time system will not allow u to change unit because stock and other movement document exists.
    Now the only solution to get CAR in exact decimals ask ur MM consultant to enable 3 decimal placess for the unit CAR in SPRO, then ur issue will be resolved
    sree

  • How to calculate variance in process order?

    hi
    i hav standard report ME1P,  i need to do some modifications in this standard prgrm
    i did all modifications except variance calculation...
    can any one expln me the logic of below code?
    IF xeipa-lprei IS INITIAL.
          IF xeipa-peinh NE 0.
            new_eipa_netpr = xeipa-preis / xeipa-peinh.
            new_eipa_peinh = xeipa-peinh.
          ELSE.
            new_eipa_netpr = xeipa-preis.
            new_eipa_peinh = 1.
          ENDIF.
          new_eipa_preis = xeipa-preis.
          new_eipa_waers = xeipa-bwaer.
        ELSE.
          IF xeipa-lpein NE 0.
            new_eipa_netpr = xeipa-lprei / xeipa-lpein.
            new_eipa_peinh = xeipa-lpein.
          ELSE.
            new_eipa_netpr = xeipa-lprei.
            new_eipa_peinh = 1.
          ENDIF.
          new_eipa_preis = xeipa-lprei.
          IF xeipa-lwaer NE space.
            new_eipa_waers = xeipa-lwaer.
          ELSE.
            new_eipa_waers = xeipa-bwaer.
          ENDIF.
        ENDIF.
        refe1 = old_eipa_preis * new_eipa_peinh.
        refe2 = new_eipa_preis * old_eipa_peinh.
        IF refe1 NE refe2 OR old_eipa_preis EQ 0 OR
             i_allekz NE space OR old_eipa_waers NE new_eipa_waers.
          IF old_eipa_waers NE new_eipa_waers AND old_eipa_waers NE space.
    CALL FUNCTION 'CONVERT_TO_LOCAL_CURRENCY'
              EXPORTING
                date             = xeipa-bedat
                foreign_amount   = new_eipa_netpr
                foreign_currency = new_eipa_waers
                local_currency   = old_eipa_waers
              IMPORTING
                local_amount     = wae_eipa_netpr.
            wae_eipa_waers = old_eipa_waers.
          ELSE.
            CLEAR: wae_eipa_netpr, wae_eipa_waers.
          ENDIF.
         PERFORM variance_cal.
         old_eipa_netpr = new_eipa_netpr.
         old_eipa_preis = new_eipa_preis.
         old_eipa_peinh = new_eipa_peinh.
         old_eipa_waers = new_eipa_waers.
      ELSE.
         DELETE xeipa.
      ENDIF.
    IF wae_eipa_netpr EQ 0.
        IF refe1 NE refe2 AND old_eipa_preis NE 0.
          IF old_eipa_preis NE 0.
            refe1 = ( new_eipa_preis * old_eipa_peinh -
                      old_eipa_preis * new_eipa_peinh ) * 1000 /
                    ( old_eipa_preis * new_eipa_peinh ).
            IF refe1 LE 999999.
              abweichung = refe1.
            ELSE.
              abweichung = 999999.
            ENDIF.
          ELSE.
            abweichung = 0.
          ENDIF.
        ENDIF.
      ELSE.
        IF wae_eipa_netpr NE old_eipa_netpr AND old_eipa_netpr NE 0.
          IF old_eipa_netpr NE 0.
            refe1      = ( wae_eipa_netpr - old_eipa_netpr ) * 1000
                         / old_eipa_netpr.
            IF refe1 LE 999999.
              abweichung = refe1.
            ELSE.
              abweichung = 999999.
            ENDIF.
          ELSE.
            abweichung = 0.
          ENDIF.
        ENDIF.
      ENDIF.
      IF sy-subrc is INITIAL.
        wa_final-abweichung = abweichung.
      ENDIF
    Regards
    Smitha

    Hi,
    It all depends on how you want the freight to be calculated (Eg: Volume based, Weight based etc.). Please share the business requirement.
    Regards

  • Rework process order without price calculation

    Hi friends,
    Our client at present rework process order done through edit or change or add the a BOM manually from the T.code COR1, because of that my costing has been changed hugely it will hit my price diff account, After Costing run price will change 10 to 50 Rs like that.
    How to do without price calculation for the rework process order ,please provide the solution for this requirements.
    Thanks &Regards,
    Sabhapathy R

    hi
    the purpose of process order w/o material
    If you want to use a process order for a reworking procedure
    If you want to use a cleanout recipe
    t code  CORO
    create a order w/o material for rework qty
    Make the same entries as described under Creating a Process Order With a Material. Once you have created the process order, the system will copy all the data from your master recipe, but not the material list.
    maintain settlement cat,receiver and % in parent order
    carryout goods movement for rework qty
    deva

  • Control Costs not Displayed in Process Order Cost Reports

    Hi
    After Variance calculation and settlement of Process Orders also COntrol COst appearing as Zero, is there any step I am missing or any configuration needs to be adjusted?
    Thanks in Advance
    Regards
    Venkat

    Hi,
    I checked in IDES system as well, there also using standard settings control costs are not getting updated on the process orders. 
    I couldn't makeout how the control costs fields get updated in the process order cost reports
    Regards
    Venkat

  • Std Costing and Actual costing at process Order

    Hello Friends,
    Followings are the client requirements, Please give me your ideas :-
    1 . Costing variant is same for all three - costing run, process order (plan and actual), means there is no prices variance on process order level. ( material at std price, Activity plan price, overhead fix%)
    2. Alongwith this above client also need to capture actual result (material at MAP, activity at monthly actual price, overhead fix %)
      In this case there is price and  usage variance can see.
    Now as I think that both scenarios are not possible on process order level.  According to me we can do by a customize actual costing cockpit.
    Need your openion that do we have any option thru standard funcations of sap to get this requirement.  If you need any other explanation , please do let me know.
    Thanks
    Ravi

    Thanks friends. I have done.

  • Variance Calculation In Process order

    Dear All Gurus,
    We have produt cost by order.
    In process order variance calculation I am gatting variance  being calculated on Input v/s output costs.
    While settlement also same variance is being posted.
    I want variance to be calculated target v/s Actual
    Please advice
    Thanks in advance
    Bhushan

    I think in production order the variance is calculated between actual costs vs planned costs which is nothing but the input costs minus the gr coss of material produced at std costs.
    Is that happenning or not??

  • Process order variance calculation not taking the GI+Activity confirmation Cost

    Hi,
    Process oder was settled in the Month of June,2014. Accounting document was generated,but system only considered the GR cost. System was not considered  the GI as well as activity cost on variance calculation. Variance posted GR= Variance.
    22nd June,2014 Variance calculated, on 30th WIP entery also reversed with the same amount.
    1st July,Order done untecho and no transactions are posted in the Month of July.
    Now they would like to settle the Process in the Month of July. system is throwing the error " Status DLV/TECHO reversed after settlement period 006.2014"
    Order status was TECO PRT  CNF  PRC  CSER BASC BCRQ CRF No variance calculation status.
    Any one faced any similar issue , please suggest me how to proceed.

    Hi,
    Please check SAP Note 386816 for error KV181.
    In general it is recommended to use the Cost estimate of the Process Order (Planned Cost Estimate) for the WIP at target calculation. In additional please pay attention to SAP Note 386816 which explains this procedure and which prerequisites must be met to calculate WIP at targets or the scrap variance. Even if the group counter of the routing is different you can still calculate WIP at targets but only if the message type of message KV181 is set to SPACE by Customizing settings.
    Hope this will a bit help to you.
    Best regards, Takashi

  • Target cost calculation in Process Order based on Variance Calculation

    Hi all,
    I have a question on Target cost calculation in Process Order. My understanding is, the Target Costs gets calculated when the confirmation and GR is made for the Process Order.
    But if the confirmation/GR is not done, whether the target costs gets calculated for only the activity types after the Variance Calculation (KKS2).
    I have two scenarios. In one, the target costs got calculated for the activity types without the confirmation/GR after the Variance calculation.
    In another scenario, the target costs are not getting calculated for the activity types without the confirmation/GR if I try to do the variance calculation in KKS2.
    SO i want to know which scenario is correct?
    Can anyone answer this question?
    Thanks and Regards,
    Brijesh

    Hi,
    In general, the target costs are calculated once you deliver the order.
    Target costs for the components and the activities are updated only once you deliver the order and the target cost for the finished product gets updated when you do the variance calculation.
    Consider your scenario number 1 - you said the target costs got calculated for activity types without confirmation / GR after variance calculation.
    Now, if the order is not having any status like PDLV, DLV or TECO it will not calculate the variances in the first place.
    Your second scenario is correct - without GR the system does not calculate any target costs. Also it will not calculate any variances because the order status is still not DLV.
    Best Regards,
    Sameer

  • Process order variance calculation

    Hi All,
    We have Sub- Assemblies which are currently set up in the system as purchased, sub-contracted sub-assemblies. this is how we will procure these the large majority of the time. There will be instances, however, where we will need to build them in house. but when we run cost estimate and mark and release sytem is using sub-contract Quantity structure in cost roll and when we producing we are using different Quantity structure like like BoM and Routing.at the time of variance calulation we are getting errors becuase of conflict in cost estimate Quantity structure and process order Quantity structure.
    How can i solve this issue?any help is appreciated...
    I'm getting the following error..
    Message no. KV181
    Diagnosis
    This message tells you which quantity structure was used by the cost estimate that calculated the target costs, and which quantity structure was used in the actuals.
    The cost estimate that calculated the target costs did not use the quantity structure used in the actuals.
    This means that the cost estimate used a different combination of task list type, task list group, and group counter than in the order itself (such as the production order).
    Example:
    Suppose the target costs were calculated in the standard cost estimate for the material, and that the standard cost estimate for the material is based on the routing identified by task list type N, task list group 50000309, and group counter 1.
    Now suppose the production order specifies a routing identified by task list type N, task list group 50000309, and group counter 2. This would lead to the error.
    System Response
    The system cannot calculate target costs for the valuation of work in process or scrap.
    See also:
    Routing/master recipe in actuals differs from qty structure for target
    Thanks,
    Anusha

    Hi,
    Please check SAP Note 386816 for error KV181.
    In general it is recommended to use the Cost estimate of the Process Order (Planned Cost Estimate) for the WIP at target calculation. In additional please pay attention to SAP Note 386816 which explains this procedure and which prerequisites must be met to calculate WIP at targets or the scrap variance. Even if the group counter of the routing is different you can still calculate WIP at targets but only if the message type of message KV181 is set to SPACE by Customizing settings.
    Hope this will a bit help to you.
    Best regards, Takashi

  • Post implementation COPA Issue - Variances not setteled for process orders

    Hi Experts,
    The client implemented COPA in the FY 2011. There were many process orders existing in the system prior to implementation of COPA. Now the client trying to archive the old process order and trying to set deletion flag  and system throwing error message u2018variances were not calculated fullyu2019.
    But client saying orders were settled and no variances existing prior to COPA implementation.
    My queries are:
    1. The orders are created prior to COPA Implementation and they were settled as well long back.  After COPA implementation why system calculating variances once again.
    2. How can I check whether the variances got settled for the process order?  Please give me the report or transaction code?
    3. Can I settle the variances to COPA Transfer structure now for the orders which were created before COPA Implementation and what will be the impact?
    Regards
    Sri laxmi

    Hi Sri,
    It should be settle the process orders before COPA implementations and find below my answers point by point.
    1.System will not calculate again variance, once you settle the process orders, you can close the orders, so it will improve the system efficiency and system will those orders in future to calculate the variances.
    2.are u try to close the order, if it is settle the order, system will allow to close the order or vice-versa.(T.code-ask PP consultants).
    3.i have mentioned clearly, previous reply,it should not be open orders.
    please let me know any further information is required.
    thanks and regards
    nagaraju sami

  • Target Cost in Process Order not calculated

    Hello,
    In Process order, after deliver of FG the target cost is not getting calculated,
    Could you please help me why the target cost is not calculated in process order.
    I have configured all setting for WIP and Variance

    Hi,
    Target costs are only calculated after goods movements have occured on the order, the Target Costs are then calculated during the Variance calculation.
    Target costs will only be calculated after the first goods receipt has been posted to the order. Also you have to ensure that the information to calculate target costs exists on the system in particular in OKV6.
    This estimation is based on the customizing for the Target cost version in transaction OKV6 as in turn will the "real" calculation of the Target costs via the variance calculation.
    So in OKV6 the Target cost will be based on preliminary costing on the order, an alternative cost estimate or the current standard cost estimate. Importantly if the choosen option is not fulfilled e.g. no current standard cost estimate, the target costs will not be predicted or calculated.
    regards
    Waman

  • Process Orders are not getting closed-- Unsettled Variances; Balances exist

    Hello Gurus,
    We have a problem when we are trying to close process orders in Release 4.6C; We are unable to close those orders and the error messages would be variances are not settled and balances still exist.
    When we try to modify the periodic settlement in process order settlement rule it gets grayed out and wont let us do any modifications. Some body suggested that we have to make the settlement rule to FUL and then try to close but it never works. It's a problem for quite sometime, any help would be worth more than an appreciation.
    Thanks,
    Ramana

    Hi Ramana
    You need to more specific on the errors and the description of the process where you are finding the problem
    Eloborate your problem like what is the settlement type now,  whether you have done the variance calculation, what is the status of the order now (TECO, DLV etc.,)
    Make the process order in TECO or DLV, calculate the variance calculation and settle the order.
    Regards,
    Suraj

  • Process order variance

    Dear experts,
    Here is process order scenario
    In that i am doing variance calculation for one order
    but it is giving message that "no order could be processed "
    Plz guide me what could be reason
    thanks in advance
    regards
    sachin ghogale

    Dear
    Before doing variance calculation check your order status it must be DLV status.
    1. After Final Confirmation of Order (Status: CNF) make GR for order using T.code: MIGO / MB31 so Production Order Status will be DLV.
    2. Then complete the order technically by using T.code: CO02--> Functions (Menu)---> Restrict Processing -
    > Technically Complete. You can carry out TECO for multiple Orders in T.code: COHV (Mass Processing).
    3. Now Calculate Overheads using T.code: KGI2 - Individual Processing
    CO43 - Collective Processing

Maybe you are looking for