KO88/CO88 Production Order Settlement Requires CO Object

Dear SAP Experts,
My client has two different plants (2000 and 2100). This is the first month end for 2100.
We are trying to settle Production Orders for both the plants. There is no issue relating to 2000 but for 2100, we are having an error "Account 52601 requires an assignment to a CO object - Message no. KI235".
Please guide on how to solve this error.
Best Regards...

Dear SAP Experts,
Thanks for the comments you all made on my posts.
The error is now solved. I'll brief so that in future, if error like again appears for someone else, they may even check the following:
The issue was that on running KO88/ CO88, there was an error stating GL Account requires Cost Object msg KI235.
On analysing the error, it was found that GL accounts appear from OBYC GBB-AUF which is the account for order settlement and again in OBYC PRD the account for price difference.
It was identified that the same accounts were assigned to both the keys. Price Difference accounts does not have cost element whereas the other account coming from GBB-AUF has Cost Element and the cost object being the Order itself.
The issue was resolved by changing the account assignment on PRD. The new account assigned was Price difference.
Thanks and Regards...

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CO - Production order settlement(KO88)

Dear SAPns
1.Explain why the production order actual settlement have to do.
2. What is the financial impact (P&L and B/s) due to settlement of production order
3. Where/How the actual cost is calculated?
4.What is the benefit to do the settlement of production order.
Anybody have document regarding above pls send me.
My Id : [email protected]
Regds
Tamil

Hi,
Production order settlement is done to capture the variance and the WIP to the header material of production order. On execution of the settlement the entries for FI will be posted with respect to variance and WIP
Regards
Kaarthik.D
Assign points if useful

Production Order Settlement Function Module

HI,
Trying to find a BAPI or Function Module to used that will perform a transaction K088 Production order Settlement. Can anyone tell me is one exists?
Thanks,
Chris

Dear friend,
I had the same requirement as you have defined, Did you get any function module for PP production order settlement (KO88). If there please mail me on [email protected]
Thanks in advance,
Regards,
Mubashir

Production Order Settlement After Process

Hi,
Explain the Production Order Settlement after the Process details.
Plz, Advise me.
Thanks,
Jeevan.S

Dear Jeyam Jevan,
1. After Final Confirmation of Order ( Status : CNF) make GR for for order using Tcode : MIGO / MB31
so Production Order Status will be DLV.
2. Then complete the order technically by using Tcode : CO02--> Functions ( Menu)---> Restrict
Processing -
> Technically Complete. You can carry out TECO for multiple Orders in Tcode : COHV
(Mass Processing).
3. Over head calculation- KGI2 or CO43
4. WIP calculation - KKAX or KKAO
5. Variance - KKS2 or KKS1
6. Settlement - KO88 or CO88.
Also check this link,
ORDER SETTLEMENT
I hope this helps you.
Regards
Mangalraj.S

Standard table for production order settlement cost

Hello,
Is there any standard table available which carries the production order settlement cost?

Dear,
Once you do Production order settlement using T.Code KO88.
You will find all relevant tables once RKACSHOW is executed for the corresponding object .
Try the table is COEP
Thanks,
MS

Error while doing production order settlement

Hi frds,
When I am doing the production order settlement, I am getting the following error
" There are no accrued amounts; settlement is not possible".
The status of the order is TECO CNF DLV PRC BASC BCRQ GMPS MANC.
Rajnish

Rajnish,
Please check if there is cost balance for the order, to me it looks like the order is already settled. In the order display mode (CO03) menu bar Goto->Costs->Balance.
If balance exists then the problem may be related to the settlement period used in the Intial screen of transaction KO88. Please check the cost incured period and use the same period as settlement period.
Regards,
Prasobh

Auto Production Order Settlement

Dear experts,
Please advise how to implement the auto production order settlement (configuration, exit)?
i need to automatically carry out the settlement procedures (in the background?) as soon as the production order gets the 'TECO' status.
I searched for similar question but not answered
http://scn.sap.com/thread/463939
Thanks for your kind suggestions in advance.
Best Regards,
Gary

Hi Gary,
What I meant here was, let's assume you have 10 plants where TECO would be done for Prod. Orders
Assuming that you split the batch jobs based on the number of the open Prod. Orders in a plant and then have them run once a day to avoid excessive use of system resources.
The program can be found with search string *CO88* in SE38.
The settlement would happen for the Orders which has the TECO status as per the standard SAP design, only difference would be that the once having no changes would be ignored and with the newly TECOed Prod. orders would be considered for the settlement.
Hope that helps!
Varshal Kachole
The SCN Rules of Engagement

Production Order Settlement

Dear All,
When I am trying to settle production order ( T.code: KO88 ) I am getting the error as
Moving average price for material is negative: 100504 2300
Message no. M8783
Kindly suggest remedies for this.
Rgds
Srini

Normally what happens is that when you have a material with price control as moving average instead of standard price. The moving average is updated when you do production order settlement
In your case, the settlement is trying to bring down the price to negative. Check this would resolve yr error.
You might want to change the materials from moving average to standard or check why the settlement is taking your moving average to negative.

Production order settlement info

Hi,
In production order settlement category is MAT.Some times it is CTR .But costing varient is PPP2.In settlement configuration i check that Allocation structure is A1 ,PA transfer sture is A1 butdefault object trype is blank . So how system take it MAT some times CTR sometimes and wt is the impact and wt is the meaning of this thing when production settlement i is happened ?
Thanks & Regards,
Debashis

HI,
You can check order type in the Production or Maintenance order as Type.
Check the Order Type in T.code KOT2 and view details for your order type in which you can see the settlement profile. The settlement profile(T.Code OKO7) will have the Default object MAT or CTR etc.
Costing variant doesn't have any relevance.
Generally all maintainence order will be settled to cost Center.
And Production Order will be settled to Material.
At the settlement all the costs incurred for the production order will be settled (Moved) to respective Finished product if it is MAT and for Cost center if it is CTR.
The accounting entries for production order will be
Price Difference F.G A/c DR
To Change in Stock A/c Cr
or Vice versa.
Regards,
Raj

Order Settlement (Ko88) Vs. Sales Order Settlement (VA88)

We would like to know what are the advantages and disadvantages of Production Order Settlement versus Sales Order Settlement.
What are the benefits between one and the other?
Please advice,
Thanks in advance,
Rio

Hello,
Thank you for replying.
We are an MTO Semiconductor manufacturing shop, High volume. somewhat repetitive but not frequent.
We have two clients:
Client 1 - Uses Standard Costing and Settles Production Orders to the Material itself.
Client 2 - Uses Actual Costing and Settles Production Orders to Sales Orders (automatic) then Settles Sales Orders to Profitability Analysi.
I'm hearing SAP does not recommend the process from Client 2 "Sales Order Settlement" because of the high volume of sales documents. still can't confirm this.
I would like to find out the following:
What are the Pros and Cons of Production order Settlement vs. Sales Order Settlement.
What are the reasons why one type of settlement is chosen over the other?
Also, I found some data from SAP Labs which relates to an Old Version of SAP, so I would like to know if this process is still current with Version 6.0
"...Settlement of the production order to the sales order is normally not required. The sales order item automatically picks up the cost incurred on the production order.
The production order must only be settled when:
- The production order is in a different company code than the sales order.
- The production order is a collective order
The sales order product cost processing will only pick up the cost on the top-level of a collective order, so the costs of the lower-level production orders must be settled to the highest level of the collective order..."
Please advice,
Rio

Production order Settlement to COPA

Hi,
How production order settlement will flow to COPA? Kindly help me by providing the Process flow for this.
I have ticked on settle to settlemtn COPA in settlement profile, and also assigned Pa transfer structure to profile, then system give below error
Enter a PA transfer structure
Message no. KD044
Diagnosis
A PA transfer structure is required for settlement to profitability
analysis.
If any body has any idea then pleas inform me.
Harry

Hi,
Please ensure that following:
1. Create the Settlement Profile. Make sure the settings are correct like valid receivers Segment should be made mandatory.
2. Make sure that the allocation sturcure is created correctly with all the cost elements and value fields
3. Please assign this allocation structure to Settlement Profile
4. in KOT2 assign the settlement profile to Order type
Once this is done, you are through with the settings and you will be able to do the settlement
Best Regards
Surya

Production order settlement to post wip

Hi,
My understanding on production order settlement is to carry out 2 task :
variance posting in the case the operation is complete
cr p&l change in stock
dr p&l price difference
and also
WIP posting in the case the operation is not complete yet.
cr p&l change in stock
dr balance sheet wip
WIP calculation is done in KKAX / KKAO and posting is done in KO88.
Now my question is, in KO88 setting I do not see any setting to tell the system to do the WIP posting. I only can see the setting to post to variance only.
and OKG8 is to set which account to post to.
So how KO88 know to post WIP?
Thanks

Hi,
KO88 transaction code is used for both WIP and Variance settlement.
It is the Order status which decides whether KO88 settles variances or WIP.
When the Order status is Released, Partially delivered, Partially released, KO88 gives you WIP
When the status is Delivered or TECO it gives Variances. Hence this is the link which we establish in the WIP configuration OKGC and in OKG8 we link the GL accounts for WIP.
For variance we assign in OBYC, PRD transaction
Thanks & Regards,
Ravi Kumar

After production order settlement, where does the cost go?

Dear Experts,
I understand after we did the "order settlement" for production order, the cost will be settled to material manufactured from the said production order. Say, the total cost is $10,000 to produce 1000 units of finished goods (FG), then the cost settled to each individual FG at $10 each, am I right? Where can I see the settled cost in the material master?..
I checked in the cost center report, S_ALR_87013611, I can see the cost Credited from "production" cost center with a breakdown in settlement cost element such as machine hour, setup and personnel hour. I understand the other side of Debit was to the production order, and only after order settlement, I'm not sure which cost center will be Debited.
That would be the CO side, how about the FI, would there be any cost posted to the GL side after production order settlement to the material?
Please advise..
regards,
Abraham

Hi Abraham,
It's not the button i mentioned. I was just trying to take u to the accounting document from the settlement screen. well just drill down the settlement screen and u'll get it. No big deal.
But more important is the concept. I'll share my understanding here. (cost by production order)
Any value that flow into controlling module should have a cost object. Here production order is the cost object.
First u create a production order (cost object) for say 1 unit of X with a std price of Rs. 10
Std price comes frm material master as a result of std cost estimate
U start production - Raw materials are consumed - 2 qty x Rs.3.
Entry RM Consumption Dr Rs. 6    Inventory Cr Rs.6 (Prod order is debited with Rs.6)
Activity (Let's say machine hours - 3 Hrs x Rs.2) According to the routing it was 2 hrs but actual production took 3 hrs.
Entry - None - But production order is debited with Rs. 6.
When production is complete for 1 qty of X, entry flows
Finished Goods Dr Rs.10    Change in Stock Cr. Rs.10 (Production order is credited with Rs.100
Abraham, now visualise both sides of the production order. It will have debit of Rs.12 and credit of Rs.10.
Now accountant sees the production order and confirms the values are ok and puts the status of TECO to the order. which means the order is technically complete.
Now when u run the order settlement, this production order is picked up by the system (due to it's status). System sees difference between debit and credit of Rs 2.
So it cedits the production order with Rs. 2. Now both debit and credit of production order is equal (Rs.12)
Entry Price diff A/c Rs,2     Change is stock A/c Rs.2
Now this rs. 2 is settled to COPA. It does not flow to material.
Reason: in a std costing system materials are valued at standard cost and
Hope this helps. Do revert in case of doubts.
Best Regards
Vimal

CO88 PP Order Settlement

Dear All,
We have processed CO88 for Production Order Settlement at end of the month and noticed price difference account has been updated with abnormal figure (OBYC-PRD).
Please let us know how to trace back and corrective method for this error.
Appreciate if anybody can give a solution to preventive this in the future and what are the reasons to raise GL figure abnormally.
Thanks
Madhawa Jayalath

One way to track it down is to go to the General ledger, display the line items for account number.
Sort by value and find the "Abnormal" values, drill into them for the production order number.
You will then need to review the production order and determine why there is a variance.
Corrective action depends on the cause.
Althea

Production order settlement in case of non valuated material

Hello guys,
Our client wants some of the materials have to be non valuated. These materials are raw materials and SFG also. We can assign UNBW material types to those materials.
I have created one material for test purpose. It doesn't contain the accounting view so as no valuation class. BOM of it , doesn't contain any component as client doesn't want to show any consumption on production order.While creating the order for that material system asks for the settlement rule. I skip that step and create the order. I do GR for the same.
My question is, is production order settlement essential for these orders? What if we don't settle the order. No activity type has been assign to the work center.
Kindly give ur valuable inputs.

Hi,
No need to create material as UNBW type.
Normal ROH, HALB, FERT material type we can achieve this.
In the BOM of FG or SFG goto item detail screen there is a tick mark in costing.
Remove the tick by OS23 - BOM status.
Now you can do your production as regular. But cost will not get update.You can do regular settlement also.
Regards,
Dharma

KO88/CO88 Production Order Settlement Requires CO Object

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