Month end producton order settlement

Dear friends,is it really necessary to settle the production orders of a particular period.What happens if we skip the settlement for a particular period .
Please give me an answer.

HI,
if you don't settle:
1: your monthly P&L statement is wrong as the PP-order material consumption postings can be seen within P&L accounts but not the WIP that is "produced" due to this material consumption (because this is one of the postings happened during settlement).
2: the PP-order balance will never be zero (thats the other posting that is created when settling PP-orders) which lead to wrong CO-PA results (compared to P&L statement)
3: you are not able to do any PP-order archiving in SAP standard until order balance is not zero (the " marked for deletion" indicator cannot be set to PP-order, maybe thats no issue for the moment but after a few periods / years of pp-order creation your SAP system increases and gets slower/slower,... and then its time to archive old PP-orders...)
So it is highly suggested to do monthly PP-order settlement,,,
Best regards, Christian

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Settlement of the month end process order KKS1 & C088

Hello all ,
we are trying to settle the variance & upadte WIP for the month end but facing some problems.
When try to Run KKS1 getting the errors for some ordera as
Only remaining var. in version 0 - no target costs for 000001003928.
Should we just ignore these errors & proceed with the settlement which is using Txn CO88.
Also if I run the CO88,I hope it just updates the WIP account so whether there is any high risk of running this transaction.
Any documentaion on CO88 will be helpful & also if you can explain what is reasons for the errors on KKS1 then it will be quite helpful .
Thanks,
AG

Hello All ,
One more question . I have done the variance calculation for my process order via KKS2 but when I run CO88 it does not settle this order . Not sure what is the criteria for order not considered for the settlement.
Order already has the delivered & Techoed status.
Thanks,
AG

CO Production Order month end closing and settlement question

We are a utility without PP module. We use CO Production Order to accumulate costs of assembling components (parts and labor) into a material number that we receipt into inventory. We have questions about month end closing process and the settlement of these CO Production Orders when receipts are not complete or labor is not completely entered at month end.
Basically we need to know how other non-manufacturing companies handle the settlement process.

Hi,
The Month end Activities are as follows
Clearing the open items of vendor, customer
Clearing the suspense account regularly
All the Expenses Including the prepaid expenses have to be booked..
Intercompany Balances Should be Zero
Depreciation Run.
Recuring Entries.
Park documents to be posted(FBVO)
Accural and referal in any differneces.
GR/IR Clearing Transaction (Tcode-F.13)
Bank Reconciliation(Comparing the Company Books and Bank Statements)
Exchange rate to be updated
Revaluation of foreign currencyopen items(F.05)
Order Settlements.
Distribution Cycle
Assesment Cycle(KSU5)
Transfer the Inventory to Profit center(1KEH)
Match GL and PCA(KE5T)
MM period Close and Open (Tcode MMVP)
FI Period Open(Tcode OB52).
CO period Closing
Year End Process
All the Month end Activities should be Carried Out.
Balance Carried Forwarded to next year(F.16)
PCA Balance Carried Forward(2KES).
Carry forward the Vendor,Customer and Asset Balances
(Unless Dep is posted for all the months the assets can not be Closed)
Copy the No Ranges to new year
Open the Next year period(OB52)
I Hope this is Helpful,
Assign the Points.
Regards,
Padma

Investment order settled more than posted on current month.

Dear All,
I have found a stange thing that I can't explain it.
Every month end, we will settle the investment orders to AuC accounts by KO8G. At the end of Jan, I settled all of them, but I found one investment order has settled more amount than posted on Jan.
By line item display, for example, I can see the account for Inv order has 4 postings, totally $67000.00. But after KO8G, there is $90000.00 settled to the AuC account.
No error message in test run and actual post in KO8G. Settlement rule is 100% to AuC.
I am really confused about the amount settled.
Please kindly throw some light on this. Thank you.
Emma

Hi,
The settlement was done monthly. There would be no un-settled amount. But that's a good tracker for the similar problem.
For my problem, I checked the Line Item one by one in KOB5. And I found 2 docs have the wrong expense account posted by the Inv order. So that's why the amount 23000 is calculated in settlement but not no shown in the right expense account by GL line item display.
I have done a posting to transfer the amount to right expense account.
Thank you.
Emma

AUC Order Settlement

Dear All
I am following the below process for AUC related Asset.
For any AUC expenditure (Suppose Building), first creating an Order & in that order booking all the costs relevant to that AUC. At the month end i am settling that order to AUC asset.
But in some cases i am facing an error that "Balancing field profit center in line item 007 not field"
This error is happening when ever the store dept using that Order in making PO & there is some advance payment exist against that PO .
My service provider is telling that in AUC asset master maintain the default cost centre to remove this error. It is working fine , but my question is till the time i am not fully capitalizing the same how i will create cost centre.
Please provide me some solution.
Very Urgent

Dear Priyadarshan ,
Actually AUC Settlement process is like:
Create internal order (ko01)
Post transactions to Related Internal Orders
Settle Internal Order Postings to AUC
and
Final settlement with AUC to Fixed Asset .
You are getting the error when you are settling the costs to IO to AUC ..so , you have to maintain cost center in that settlement AUC .
in cost centers we assigns profit center.
Hope you get the solution
Thanks
ssrao

Process Order Settlement without GR or GI

Hello,
I have a quick question that I need help with please. A process order has no Goods Receipt yet (only consumption) as of month-end when we settle all orders. Will such an order settle and post an entry to GL even though it is not completed yet?
Also, if an order has Goods Receipt but no consumption (I know it doesnt make sense, but it is an error order), will it still settle?
Thanks,
Gligor.

Hi,
If I understood correctly, you have consumptions of RM from your inventory but you dont have production GR. You wanted to do the order settlement.
- Why do you want to settle order that is not completed in production? If there are any expenses on the order during the month, shouldn't these expenses be tracked as WIP?
- Also, for the case where there are GR without GI, are there any activity consumptions on the process order?
Thanks,
Ram

Production order settlement with 0

Hi,
I understand each month end Internal Order must be 0.
When I see in production order, those production order with status teco, it is 0 in KOB1 but those production order status which not teco, i see the balance in KOB1.
So I would like to know should production order need to be 0 when come month end for all production order status be it teco or not?
what is the impact to costing and finance?
Thanks

Dear,
Please check in your Result Analysis Version (OKG9) whether Transfer to Financial Accounting is checked. If you check this then only results analysis data saved under this results analysis version can be passed to Financial Accounting when you settle.
For Details information please refer below ;
Transfer Results Analysis Data to Financial Accounting?
This indicator means that results analysis data saved under this results analysis version can be passed to Financial Accounting when you settle.
If Profit Center Accounting is active, an additional posting is made in Profit Center Accounting on the basis of this posting if the profit center number is indicated in the object to be settled.
Use
You set this indicator when you want to pass results analysis data to Financial Accounting.
Procedure
Set this indicator if appropriate.
To be able to pass results analysis data to Financial Accounting, you must define posting rules on the basis of which the work in process or reserves are capitalized or shown as a liability (see also: Posting rules for settlement to FI).
Dependencies
In results analysis it is possible to make a cross-company valuation for projects or sales orders and update under a results analysis version. The results of this valuation cannot be passed to Financial Accounting.
The results analysis data that you transfer to Financial Accounting is also passed to the ledgers in which the transaction "KOAE" was assigned the combination company code / ledger.
The results analysis data that you transfer to Financial Accounting is also transferred to Consolidation.
Br,Vivek

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.
1) Can FI settle those REL work orders, as mentioned before?
This is what I found:
2) The standard practice is TECO, is to set before closing the order.
3) You can only perform (business) closing for a process order if (CLSD):
The order has status Released (REL), Control recipe created (CRCR) or Control recipe discarded (CRAB), or Technically completed (TECO). To have status Technically completed, the order must have already reached status Released.
The order balance is 0.
There are no more open purchase requisitions, orders, or commitments for it.
All data related to the process order is available and correct (For example, the inspection lots for the order must be completed).
There are no future change records from the confirmation processes
2) So, if statement 1) is correct, is this correct lifeycle:
A.     Settlement at month end for all orders with REL status.
B.      TECO after settlement, and also after DLV and CNF status.
C.      Close after TECO.
Upload in your comments, if there is any link.
Thanks, points will be rewarded.

Hi Abi,
Since the Process order is in uncompleted stage and partially delivered to stock, still it has WIP to be delivered to stock.
Calculate the WIP value & settle the order in Month end.
Prerequisite for WIP calculation is order should has REL status.
In month end for Uncompleted order , calculate WIP value & settle the Order.
General steps for month end practice:
Over head calculation
WIP calculation
Variance calculation - Once the Order receives - DLV /TECO status.
Order settlement.
Order closing
Regards
Pradeep

Archived Service Orders settling in the month end job!!!

Hi All,
Service orders were archived using object PM_ORDER and now the month end settlement job has settled some very old service contracts. Why is this happening inspite of running the archive pre process job which ensures that the service orders have been settled before archiving them.
What can be done to correct them? We have a list of order numbers which have got settled, but not sure how to set this problem right.
Plus need to prevent this from happening in the next month end settlement.
This is a critical issue.. so any help will be greatly appreciated!
Thanks in advance!
Janani

Hi ,
1) In general , archived Orders won't be avl in the system for process. Check whether those orders are really archived .
2) While running preprocess for archiving that is deletion process for Orders , it might have closed/deleted the linked objects ( for e.g. Purchase requisitions,reservation, etc ) . System might have settled those orders in the current settlement run
Regards
Mani

CO-Production Order Settlement at Month End

Hi Expert
We are using CO- Production Orders for making sample materials; the problem is that at month end when I run the settlement with CO88 at plant level system settled my CO-PO orders including release status orders. I want to settle only those orders whose status is TECO Technically Completed.
Can any body have an idea that why system settled my Release CO-PO order, I donu2019t want these orders to be settled in month end?
Thanks in Advance
Regards
Ashfaq

Hi Ashfaq
System is correct in doing this... All orders Including REL & over and above status REL would settle
If you wanna ignore them, then best option is to
a. Check the Order status from Table JEST
b. Settle them from KO88 using an LSMW
You can also use Program SE38-RKO7CO88.. This provides you multiple selection options... Ask your ABAP consultant to
a. Create a Z T code using RKO7...
b. create a SEARCH HELP so that you can select orders based on STATUS in RKO7CO88
br, Ajay M

Settlement for month-end closing, individual production or sales order

Dear SAP Experts,
Our style is MTO.
In month-end closing, we follow to make a settlement for production orders:
1. CO43   -- Actual overhead calculation (collective processing)
2. KSU5   -- Actual allocations Assessment
3. KSII     -- Actual Price Calculation
4. CON2 -- Revaluation at actual prices (collective processing)
5. KKAO -- WIP calculation (collective processing)
6. CO88 -- Production order settlement (collective processing)
Question:
1. What kind accounts will be effected after above each step?
2. does individual production settlement need step 1-4 in above?
    1. KKAX (Work in Process)
    2. KO88 (Settlement)
    Is those enough?
3. What kind account will be effected after va44 processing?
Any tips will be welcome.
Zhou Zhen

Hi,
The value flow completely different for each of the MTO Scenario.
I need to know what kind of MTO scenario you have.
is it MTO - Valuated Sale Order without Sale Order Controlling
Is it MTO - Valuated Sale Order with Sale Order Controling
is it MTO- Non-valuated Sale Order (Sale Order controlling is mandatory)
based on this the value flows and the transaction that need to be executed will differ.
The way you explained i presume that it could be any of the first two scenarios.
in such case, the value flows are as good as make to stock scenario. Only in the third scenario, the value flow completely changes
For 1. What kind accounts will be effected after above each step?
all the accounts relevant for Make to Stock will get affected. But the the scenario is MTO - Valuated Sale Order with Sale Order Controling, the the variances from production order is settled to Sale order instead of settling to COPA.
For 2. does individual production settlement need step 1-4 in above?
All the steps from 1 to 6 are necessary for any of the above 3 scenarios
For 3. What kind account will be effected after va44 processing?
This is for calculating the overheads on the sale order. in this case, the sale order is a controlling object. once this t.code is executed, you can see the oh being calculated on the sale order
Hope this will give some good isight in to various MTO scenarios
Best Regards
Surya

Month end closing - production order status

Hello,
I am requesting the information, can I carry the month end closing and account for only production orders having the TECO system status rather than considering production orders with the DLV status.
Where in SPRO these parameters are being adjusted .
Thanks and Regards
Artur

Hi,
For settlement, the Order Status Should be TECO and/or DLV.
If it is not TECO also, with DLV status syetm will consider the Order for Settlement.
With BS22 (Maintain System Statuses) you can handle the Situation..
Travel to I0045 - TECO- Double Click on that.
Please refer this link also
[Link|Re: scrap]
Hope this clarifies..
Regards,
R.Brahmankar
Reward if useful.

Asset Under Construction(AUC),During month end settlement run(via KO8G)

Hi Guys ,
please hlep on this AUC :
During month end settlement run (via tcode KO8G), if there are -ve (credit) values to be settled to an Asset Under Construction (AUC) asset which does not have sufficient +ve value in the current FY, the settlement run will prompt an error message "Balance for transaction type group 10 negative for the area 01". The TT posted via the settlement run is TT115. To get around, user has to raise a manual journal (via doc type AT) to post the -ve value to the same AUC asset via TT101. TT 115 and 101 are configured differently (see attached).
Since the Fixed Assets system does accept credit posting to AUC via a journal, is there a solution to make posting go through via the settlement run?
Regards,
Narra

You can settle the AUC value in one period and posting can be made in another period. in the same you can give the different asset value date in KO88 screen. The only limitation is this possible only if the fiscal year is same.
Give the asset value date as 15.07.2007 in KO88
Hope this will work
Radha

PM Order settlements - Difference between the amounts settled

Hi All,
This is regarding the PM Order settlements.
Every month end finance team run KO8G and settle the PM Order costs for that period (month). In the process the Orders are settled using a variant, which captures all the orders that has changed/created during the focused period.
But in the report S_ALR_87013015 - List: Actual Debit/Credit there are balances for previous settlements and thereu2019s a difference between the amount settled and the debit/credit amounts.
When drilling gown we found that this is due to following reasons,
1. Some orders are not settled fully.
2. Equipments issued against a Order are returned after the settlement process
Ex: one Order has settled in Oct 2008 initially and fully in Jan 2009. However one material has been returned to stores in February 2009. Therefore a difference (cost of the material) between total actual cost (Dr Amount) and settled amount has been arisen.
The Orders of nature 1 will be captured and settled in the subsequent run of KO8G.
But my question is how can we address the orders of nature 2? Changing the settlement variant is one option.
Also appreciate if someone can explain the SAP-best practice of PM-Order settlements.
Thanks,
Thushantha.

Hi Thushantha,
After returning the material to store check the actual cost of maintenance order. Once you fully settle the order means it becomes zero.
When you will return material to warehouse against maintenance order once again carry out settlement of maintenanc order then check for your nature 2.
Sundar

Asset value date in Internal order settlement ko88

Hi.
I have posted some expenses to the internal order. I m trying to settle it to AUC with tcode KO88.
In the selection screen of ko88 i gave asset value date as 15.07.2011 but system is posting with month end date only as 31.07.2011.
I read the sap note 98496. In that its mentioned that the asset value date given in settlement parameters will override the asset value date given in the selection screen of ko88.
I tried to update the AUC asset value date in KO02 where we give settlement rules but i couldnt find any field there.
Where do i update the AUC asset value date in settlement parameters. Can anyone provide me the tcode and the field where i update this asset value date.
Regards,
Padmavathi

Hi
You can the same in transaction code KO02
1. Click on 'Settlement Rule'
2 Select 'Goto' in toll bar
3.Select 'Settlement Parameter F8"
4 there you will get" Asset value date"
Table Name" COBRA" field "BZDAT"
Hope this will helpful for you
Regards
Praveen P C

Month end producton order settlement

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