KKAX shows WIP costs after settling the production order

Dear experts,
We have production order and we did the following actions in March (end of the year),
1-     Create the order
2-     TECO the order
Then in May we did the following actions:
1.     Revoke TECO
2.     Give DLV
3.     TECO again
4.     Calculating the variances
5.     Settle the order
The problem that in KKAX we can see the WIP costs in the column (WIP (Cumul.))
So, although the order is settled but the WIP costs not cleared,
And as I know the settlement will clear the costs, how this happen.
Thanks in advance

Hi
First u see whether u have any incomplete Production order .
That is in any oder have u not comfirmed quantity if in this casse please clear than now try to run the KKAX
Regards
Ramanujam

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WIP is not calculated even after settlement of Production Order.

Hi Friends,
The system is not calculating WIP even after settlement of Production Order.
Please suggest possible solutions.
Thanks in advance.
Regards
Rahul Jain

Hi Rahul ,
SAP has two distinct steps..
1. WIP steps calculates the WIP if the order is not fully delivered ..
2. Settlement steps posts the WIP calculated to the GL accounts..
Please check wether the process order under consideration statisfy to be a partially delivered order ..
Regards
Sarada

Settle the production order

hi,
what are steps to settle the production order( order settlement)
thanks & regards,
elanchi

Hi,
Follow below steps for order settlement. Before order settlement confirmation must be done i.e order should have CNF status.
- After Final Confirmation of Order make GR for for order using Tcode : MIGO / MB31 for manual or at confirmation with auto goods reciept. so Production Order Status will be delivered -DLV.
-Then complete the order technically in CO02 - Functions ( Menu)--- Restrict Processing -
Technically Complete. TECO for multiple Orders in mass basis with COHV.
-Next Calculate Overheads using Tcode KGI2 (Individual Processing) or CO43 (Collective Processing)
-Then Calculate WIP using Tcode KKAX (Individual Processing) or
KKAO(Collective Processing).
-After that Calculate Variance by Tcode KKS2(Individual Processing) or KKS1 (Collective Processing)
-Finally do the settlement of Order with Tcode KO88 (Individual Processing) or CO88 (Collective Processing).
After settlement order balance will be zero & then you can do the closing of order.
in CO02 - Functions ( Menu)--- Restrict Processing -
Close. Close for multiple Orders in mass basis with COHV.
Hope this will help you.

How to settle the production order variance to 3 GL account

dear all
i met a problem in the project ,the customer need see the production order variance category detail for (material,routine,overhead variance) in FI report ,so it need to settle the variance to at least 3 GL account
i don't know how to configure it ,i try to use result analyse like wip ,but go failed
do you have some suggestion
thank you

Hi ,
Through Standard SAP .. the same it not possible . Standard SAP will post the differences to one GL account ..The variance amount is not segregated..
The way out is to use report KKO0 .( Product Costing Drill Down Reports ) in CO . There are many reports available .. and you can compute the difference in CO Reports and manually make an entry in FI by manually reversing the original variance account and posting it to cost component wise variance accounts ..
To use the KKO0 report.. please perform the following tasks :-
1. Assign cost component structure in transaction OKN0 ( Date Extraction/Product Drill Down) tab.
2. Product Group Type = Material group..
3. Run KKRV after period end every month to collect the data for drill down reporting..
Please revert back for any further clarifications
Regards
Sarada
Sarada

Accounting entry - WIP, Variance Calculation & Settlement of Production Orders

Hi All,
Please explain the process of WIP calculation, variance and settlement of production orders. At each stage will there be an accounting entry generated?
1. WIP calculation: All production orders for which the status is REL at the month end will be included in WIP calculation. How the amount of WIP is derived and what will be the accounting entry.
2. Variance calculation: Production order needs to have the status TECHO in order to do the variance settlement. Will there be an accounting action and how the amount will be calculated?
3. Settlement of Production Orders: Dr. WIP A/c (Balance Sheet a/c)
                                                    Cr. Volume Variance WIP a/c (P&L Account)
    Is this the correct accounting entry? If yes, please advice how the WIP a/c is showing balance on settlement of production order, how it will get nullified? If no, please advise on the correct process?
Regards

Dear Andy
In product cost by order scenario the WIP or Variance calculation is dependent on order status. If the Order has a status of REL or PDLV, the system will calculate WIP and if the order status is DLV or TECO the system will calculate variance on this order. At the time of calculation of WIP or Variance no accounting entry i generated but when you settle the order at that time FI documents are passed in the books.
Ans1- In product cost by order WIP or variance is calculated based on the actual cost debited to the order and value of GR made to the order. System does calculation by the formula GR value-(GI value+Activity value+ Overheads)
Ans2- As I said at the time of calculation no FI entries are passed but at the time of settlement FI entries are generated. The method of calculation is the same as described in Ans1.
Ans3- Entry at WIP settlement WIP (P&L) a/c Dr and WIP Offsetting(B/S a/c) Cr.
          Entry at variance settlement : Variance a/c dr/cr and COGM cr/dr.
          and if there is already a WIP posted for this order then at settlement WIP entry is reversed provided we have calculated WIP again the the month of settlement of variance
Note for Anand: Dear Anand we need to calculate WIP again in the period when the order status is changed to DLV or TECO otherwise system will not pass reversal entry of WIP. Kindly test it in your IDES and let me know if you find something on the contrary.
Regards
Rajneesh Saxena

Settlement of Production Order to specific GL Code

Dear All,
During the production process we get the output of some materils as powder. If we carry the further production of the same we are able to get some raw materils
for example: - if the byproduct is 2kgs. we will get the raw materials of 1.5kgs. We want to post the difference amount of 0.5 kgs to either production loss / cost of goods sold / melting loss etc gl code.
kindly suggest the procedure of handling in CO module and we would like to settle the production order to specific gl code
Regards
Anilkumar

You will have to define settlement rule first. The settlement rule configuration should allow posting to GL account. You will also have to define variance calculation. First do the variance calculation and then perform settlement. From this link check variance and settlement topics.
http://help.sap.com/saphelp_47x200/helpdata/en/90/ba81d2446711d189420000e829fbbd/frameset.htm
Regards
Ram

Cost Center field in Production Order CO01 and PO tables

Hi SAP Consultants,
Is there any Cost Center field in Production Order transaction CO01 ?
What are the tables where Production order data is stored/saved ?
Any help would be appreciated.
Thanks in advance.

Need to understand your purpose first. Let's not make it any more technical than it should be, talking in terms of fields and layouts.
All the replies given before mine are referring to the operational costs - which are what are passed on "for performing each operation" of the production order. These are the costs coming to the production order from the work center where the operation is performed. At the end of several operations, the production order would have collected all these costs of different operations, and also those of the materials used in the process. There may be other (overhead, etc) costs coming on to the production order too.
If you're looking for one "cost center" for the entire production order, what cost center is this? Is it the department to which you want to settle the production costs? This is possible, that all the costs accumulated in the production order over the course of its life are finally "settled" to a different cost object, which can be an inventory account, or a sales order, an internal order, or a cost center etc. (There are exceptions, where a production order need not be settled but lets leave this to save us some complexity).
What exactly are you looking for? What is the business purpose you are trying to achieve? Or is it just a purely technical reason to write a report or something? Even then we need to know the purpose and objective of the report/enhancement before being able to answer your question.
-Ram

After seeing the production in London I purchased the whole sound track and it did not completely load. I've never had this problem Today I am downloading an album only to find out it's missing the voacals. Do I have to start just settling for this kinds

After seeing the production of Matilda in London I purchased the whole sound track and it did not completely load. I've never had this problem before so I just forgot about it. Today I am downloading an album only to find out it's missing the voacals. Do I have to start just settling for these kinds things. I'm feeling taken.

Hello MarkFKenny,
If you feel that there is an issue with a purchase made, you can report an issue with said purchase to the folks in our iTunes Store.
How to report an issue with your iTunes Store, App Store, Mac App Store, or iBooks Store purchase
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Allen

Additive cost not seen in production order and while settling hits PRD

I am using additive costs for my product costing via CK74n.
Cost estimate looks good since I have the valuation variants setup to include additive costs.
But when I see the production order that is being created, all others costs are being considered except additive costs. They are recognized but not as a line item instead as a variance. When I settle the order the costs actually hit price difference account and not even the GL account that I had assigned for the additive cost. SAP did not consider the cost as variance even if it was showing up as variance initially. This as I understood is partly because of the settlement rule that I have in place which tells SAP to go and settle on the material (which is standard SAP to do since I want all the costs from the production order to settle on the eventual material going into stock) so SAP went on to settling on the material. Since the material is set as standard price the variance is being booked as a price difference entry.
Ideally I would have expected the additive cost getting debited to the order and credited to the gl account that I assigned for the additive cost. The eventual cost (incl. additive cost) should hit the inventory.
Am I missing a step?

Hi Sapluver,
Appreciate your prompt response..Please see my response in italics
Few queries related to your post.
1. So your standard cost got two part, one with quantity structure ( materials, labor, OSC etc) which the system cost automatically and one manual part, which is your additive cost. While costing system picks up this manual part from CK74N.
I hope this part you got correct. Yes, the cost estimate is reading from both the qty structure and the additive costs and the cost roll-up is coming up correctly
2. Now in actual cost controlling, i think System is not sure how to valuate your additive cost actual part.I agree, the additive cost does appear in the cost analysis section of the production order but does not show up as a line item initially. Instead it comes up as a difference item right in the bottom of the screen after totals have been displayed without any line item reference. As if the system is not sure how to display the line item. Once I have done the material issuance confirmation to the order, the additive cost got picked up correctly as I have set it up in the cost component structure as material overhead but again shows up only as variance
Which method you used to debit your production order with additive cost, is it a normal journal entry or through some automatic posting through routing ( example OSC through Purchase order/Good Receipt).I probably need to understand your point more clearly? I am not manually debiting the production order at all for the additive cost. I was expecting SAP to debit the order the same way it does for overheads. Overheads too initially show up as variance but then when we run the overhead calculation KGI2 the overheads costs get debited to the production order. Was expecting similar behavior for additive costs. I am receiving the finished product from the production order into stock via MIGO goods receipt movement type 101. I was expecting the debit to happen perhaps at the time of settlement via CO88 but here the system posted it to the price difference account via account key PRD. This I understand the system did because the settlement rule is set to post all the costs on the material and the material has the valuation control as standard price; so the system is seeing the additive cost as a price difference hence posting it to the price difference account.
System is unaware of the additive cost from actual cost point of view, there is no specification to additive cost from costing variant for actual cost. So you have to debit the order with the additive cost part.So do I manually debit the order with the additive cost? What about the price difference additive cost sitting on the order? Would appreciate if you can tell me the process steps for posting this correctly
regards
Sapluver

Cost estimate of the product

Hi,
Can anyone please let me know what is process for cost estimate for the product in SAP. Just give me a thought in simple terms.....
1. How system will estimate the costs?
2. In which cases we should settle the costs?
3. What is the process to settle the cost through internal orders/gl's etc.,?
4. What are the main requirements for this process?
Please give us your thoughts on the above mentioned queries...
Regards
Krishna

Cost estimate for a material is done by the system through product cost planning.
You have to define the following:
A cost component structure which splits the cost into different components as per your requirement
A valuation variant which decides the various factors such as material pricing, activity pricing, sub-contracting, external activity prices, etc.
A costing variant which controls the parameters for a costing run which helps to update the prices in the material master.
a production run is carried out for a production order, process order, product cost collector etc. Periodically these objects are settled to the material in question.

Periodic cost settlement for production order

Hello All,
Please explain me can we do Periodic cost settlement for production order in discrete manufacturing. If yes, how?
Thanks & Regards,
Alok Tiwari

WIP entry gets passed to accounts if the order is not in DLV or TECO status.
or else variance gets calculated.
Two GLs which gets hit are
Change in stock a/c Dr.
To Inventory Price Difference a/c Cr. or vice versa......
Regards,
Divraj

GR for production order post to cost center and not to the production order

Hi all,
when we post the goods receipt for the finished product against the production order (mov. type 101), the order is not credited with the corresponding stock value. Instead of this, the value accounts to a cost center.
We specified this cost center in OKB9 (Default account assignment), because if not, we get an error when posting the goods receipt cause of lacking accounting object.
I can't see why the system does not credit the production order?
Any ideas?
Thanks for your time
Daniel

Hi Daniel,
This is the first time i am coming across an issue like this.
neverthless from a logical front,
1. Remove Cost center as a valid receiver in Settlement Profile.
2. Your OKB9 setting are pretty much good. No need to worry about it. Becasue, OKB9 only will work if the system doesn't identify any other cost object. In this case Production Order is an automatic cost object which system should have taken.
3. Check the Settlement rule when you have created Production Order. It should have been MAT.
4. I hope you are creating Production Order with Material (using CO01 and not CO07)
5. Make sure in OPL8, the default rule in controlling tab is PP1.
Once all these are fine, i do not see any reason why you will get your probelm.
Please check and revert back to me if the problem still persists.
Best Regards
Surya

Doubt about the settlement rule of the Production ORder

The only default distribution rule allowed for a PP order is PP1 or PP2. We would need to change that to allow settlement to multiple receivers as a default. If that is the case, we may want to look into a user exit to update the settlement rule during production order creation instead so that the G/L account is correct from the beginning.
Currently when we create the production order, the settlement rule will default the below, I am not sure if a user exit is able to maintain the Source as 200 (Materials)?
If yes, we can then add the second rule for Source 100 (Labor and Mfg) via the user exit as well.
In this case, SAP will not prompt us error of settlement with 200%, as they are from difference Sources.
now anybody can explain me about the User EXit we have to correct this

any help on this.. please its very urgent
thanks in advance

At the time of confirmation Costs are loaded to Production order

Dear All,
At the time of confirmation of the Production orders the costs are not
debited/loaded to the Production order. They are not
credited to the cost centers although all the necessay master data (Work
centers, Cost centers, cost rates ) is there in SAP.
Please help me..
Regards
janardhan

>
Janardhan CH wrote:
> Dear All,
>
> At the time of confirmation of the Production orders the costs are not
> debited/loaded to the Production order. They are not
> credited to the cost centers although all the necessay master data (Work
> centers, Cost centers, cost rates ) is there in SAP.
>
> Please help me..
> Regards
> janardhan
Janardhan,
1. Check whether the operation is assigned with Costing Relevancy Indicator and has a control key relevant for costing.
2. Check whether in the routing the activity type is seen and it has some standard values maintained.
Regards,
Prasobh

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KKAX shows WIP costs after settling the production order

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