KO8G Order Settlement after or before TECO

Hi,
Can someone help me to confirm this understanding.
As part of my business processes, I capture cost and revenue in a CO internal order. At the completion of the internal order, I will settle this cost and revenue in it to profit segment.
The question is, if the internal order captured cost and revenue in period 6 of fiscal year 2009. After that no further posting into this internal order, then:
Scenario 1.     
If the internal order is TECO without performing settlement in Fiscal year 2009, and I proceed to assign a settlement rule to this internal order and perform settlement of this internal order now (fiscal year 2010), I understand that there will not be cost or revenue being settled to the receiver specified in the settlement rule.
Is this the correct system behaviour?
Scenario 2.     
If I only TECO the internal order and assign it a settlement rules now (fiscal year 2010), once I execute the settlement, then the cost and revenue captured previously (in this case, fiscal year 2009) will be settled to the receiver based on the settlement rule.
Is this the correct system behaviour?
Besides, I suppose I can settle a internal order again after the initiate settlement if there is new cost or revenue posted to the internal order. Right?
Regards,
Cheah

Thanks for the advice.
My intention is not to settle the cost/revenue in the internal order any more.
However, since there is WIP posted based on the value captured in these order, I would like to run the execution to let the system reverse out the WIP.
I know that I can do this for internal order in the last and previous fiscal year and I just want to confirm that to achieve this these IO from the previous fiscal year must be TECO in the previous fiscal year.
If the TECO is not done in the previous year and only do it in this fiscal year, the system not only will reverse the WIP to the correct amount but also post the settlment to the receiver.
(in my case here, the order may have WIP posted in the previous fiscal year, but the settlement was not done after TECO)
Can you help to confirm that this understanding is correct?
Regards,
Cheah

Similar Messages

  • Production Order  Settlement After Process

    Hi,
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    Dear Jeyam Jevan,
    1. After Final Confirmation of Order ( Status : CNF) make GR for for order using Tcode : MIGO / MB31
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    4. WIP calculation - KKAX or KKAO
    5. Variance - KKS2 or KKS1
    6. Settlement - KO88 or CO88.
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    ORDER SETTLEMENT
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    Regards
    Mangalraj.S

  • Whatever the steps in order settlement

    whatever the steps we have to do  in order settlement(ko88).
    pls let me know
    Thanks,
    Maran.d

    Dear Maran
    Plz Refer to Mr. Brahmankar inputs on settelment of order
    You should follow following steps for Order Settlement after confirmation :
    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.Now Calculate Overheads using Tcode : KGI2 - Individual Processing
    CO43 - Collective Processing
    4.Calculate WIP using Tcode : KKAX - Individual Processing
    KKAO - Collective Processing
    5.Calculate Variance by using Tcode : KKS2 - Individual Processing
    KKS1 - Collective Processing
    6.Finally do the settlement of Order in Tcode : KO88 - Individual Processing
    CO88 - Collective Processing
    Added
    in KO88, give ur order number
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    and year as 2009 & execute
    Hope this helps.
    Regards,
    kumar
    Edited by: kumar kumar on Sep 10, 2009 2:26 PM

  • Internal Order Settlement-urgent

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    These could be orders already settled in the earlier years with some balance is USD currency. It is possible that the old version of SAP allowed the full settlement even with the balance in controlling area currency. In the version 4.7 this is not possible.
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  • Mutually cancelling entry in CJI3 after order settlement to WBS element

    Hi,
    In our scenario we create Service Orders for work execution & assign WBS element to the service order (to control the spends). When actual costs get booked in the service order, I can see these costs in the Project Actual Cost Line items report (CJI3). When I settle the order costs to the WBS element, there is a mutually cancelling entry in the CJI3 report for that WBS element for the settled amount. Is this the right behaviour?
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    Thanking you in advance
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    Deepak

    That's normal with line item report incase you use settlement 'By cost element' (Allocation structure)
    If you use by settlement 'Settlement cost element' you see another line item but again the net balance would be zero.
    But in case of hierarchy reports in PS settlement transactions are ignored.
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  • 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
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    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

  • KO8G open work order settlement

    Hi,
    I am facing an issue with open work order settlement using KO8G or KO88.
    We are on 6.0 and PSM turned and New GL activated with a document splitting on fund mandatory flag turned on.
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    This means that both my P&L accounts and my balance sheet accounts that offset the WIP posting does not have the fund field (which is a mandatory field for posting any document in the system).
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    Any help would be appreciated.
    Thanks,
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    Edited by: Pradeep Giri on May 30, 2009 4:07 AM

    Hey Vanessa,
    Sorry i have been really busy with work off late. I just got a moment and wanted to thank you for the help.
    I found a solution for it, we had FMDERIVE default the fund on the accounts used in WIP settlement as they are dedicated for those process.
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    Do you see any other implications on this?
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  • Open Work Order settlement - KO8G or KO88

    Hi,
    I am facing an issue with open work order settlement using KO8G or KO88.
    We are on 6.0 and PSM turned and New GL activated with a document splitting on fund mandatory flag turned on.
    When open work orders undergo WIP calculation through KKAI, it shows the the calculated amount in the GL account but when we execute KO88 or KO8G to settle this open work order amount to the GL, it gives me the below error
    GLT2201 "Balancing field "Fund" in line item 001 not filled"
    On debugging the KO88, its seen that the field fund does not flow in from the work order.
    This means that both my P&L accounts and my balance sheet accounts that offset the WIP posting does not have the fund field (which is a mandatory field for posting any document in the system).
    Has anyone come across such a situation?
    Any help would be appreciated.
    Thanks,
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    Ashok,
    Thanks for the reply.
    We have a user exit to populate the order during its creation. this means the fund field is already residing on the order. so during settlement process, closed orders dont have a problem but when open orders are subject to settlement i.e WIP settlement, the cost on the order is not transferred to the GL account because of the fund missing as our financial statements should be balances by fund.
    Do you think an user exit can suffice this ? have you ever tried or come across such a scenario.
    Thanks
    Pradeep

  • Define back ground job for Maintenance Order Settlement through KO8G

    Hi Experts,
    I need to define back ground job for Maintenance Order Settlement through KO8G transaction code.
    Here are the requirements
    1. The job should run on weekly basis automatically.
    2. The settlement period and posting period should be taken care by the job dynamically. i.e. if the job runs in July, the job should pick up Settlement period and posting period as 7 automatically.
    Kindly let me know the steps to define the back ground job as per above requirement.
    Sanjeev

    To run the KO8G  each week, the a RECURRING job has to be created.  At my job, Basis/Ops department would create and schedule the job.
    To have the posting periods, dates etc dynamically determined at the time the job runs:
    Create the variant and save.
    In 5.0, KO8G does not save a variant, therefore, go to SE38 and create a variant for program: RKO7KO8G
    When you go to the ATTRIBUTES screen, to add a name and description, you will see a list of all the fields that are part of the selection criteria. 
    For an example, I frequently use the Posting Date. To the right of the screen is a field called Selection Variable, click on the drop box and select D - Dynamic Date Calculation.
    Go to field NAme of variable, click on drop box and select the variable you want.
    Each field has its own list of selection variable and name of variable depending on how it works in the progra.
    If you look at Posting period you will see:
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    I do not know about User defined variables, but for TVARC there is thread that leads to a "how to" blog
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    do some more searching and you should find more answers
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  • Order status after settlement

    hi friends,
    What status does the system set for those orders for which the settlement is done.
    I what to take a list of orders for which settlement is done for the month.
    regards
    csn.

    Hello,
    After Settlement System will not put the Status: NAKL ( Final Costing).
    Because the production order can continue to be charged with costs even after order settlement, the status "Final costing" would merely indicate that the order has been settled at least once. The status cannot indicate that the order no longer has a BALANCE. Therefore, the system would have to reset the status again for every actual posting to the order. However, this procedure is not currently supported.
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  • KO8G for running production order settlement

    Dear All,
    I need to use the KO8G, for running production order settlement, on a batch job.
    I found a SAP Note Number 498387 where is said that, for the selection of statuses of orders of the order category 10 or greater, will be used a status selection profile.
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    Like I was written in my first message the Standard variant SAP&01, which contains values of Order type, Status of order...Created,Closed, Tech Complete, Released doesn´t work for production orders, like is said on SAP Note Number 498387.
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  • What is the difference between TECO and Order settlement?

    What is the diff. between TECO and order settlement and what is the use of both?

    Hi,
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    Where as Settlement of an order is carried out periodically to settle the costs related to the order to a settlement receiver.
    for more details read
    http://help.sap.com/saphelp_46b/helpdata/en/a9/ab7422414111d182b10000e829fbfe/frameset.htm
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  • Incomplete Process order settlement at Month end.

    We have issue with order settlement during the month end. We have process orders that run over the week (thus will run over the month-end), with REL, PCNF, and PDLV status at the month end. Production does not want to close/ TECO those orders, as we are not yet done. But FI wants to settle them for the month end.
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    Hi Abi,
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    Pradeep

  • PM Order settlements - Difference between the amounts settled

    Hi All,
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