Order settlement - MTO
Hi Experts;
I am new to MTO environment. I have a issue with production order settlement.
1. Can u please guide me the steps which i need to follow and what is the difference between order settlement process comparing with MTS.
2. What is the role of pricing indicator "S" and "v" with order settlement.
3. Is there any relationship between moving / standard price of BOM components for the output material cost and moving price update of finished product.
Request you to explain the concept behind the settlement.
Thanks and Regards;
Malka samarasinghe
HI,
pls. check the following link:
http://help.sap.com/saphelp_erp60/helpdata/en/90/ba81d2446711d189420000e829fbbd/frameset.htm
It is a decision based on customer needs to follow "complex make-to-order production " or (the thing you require) "mass production on the basis of sales orders".
In the second case "The flow of quantities and values corresponds to that of make-to-stock production, while the cost accounting method costs the products."
There are a number of customizing steps to be made but it is possible to settle prod. order in MTO process not to sales order position but as it is in makt-to-stock process.
Best regards, Christian
Similar Messages
-
MTO Production Order settlement - assignment field filled incorrectly
Dear All
Normally, once our production orders are settled the assignment field in the accounting document that gets generated contains the production order.
However, in the case of our MTO production orders that get automatically created from a sales order, the assignment field is getting populated with the sales order # and item # on the sales order that generates the production order.
This is causing some difficulties for our accounting folks.
I checked the Sort key assigned to the GL account and it is assigned 036 (AUFNR).
Any ideas? Could the MTO functionality override this? Is the sales order and sales order item # being pulled in from somewhere else during the goods movement?
Also, wondering where I can see this in the system and if it's coming off the production order itself, or the material document posted for the production order, or just from the order settlement?
Many Thanks!We've found an alternative process for this.
Thank you. -
CCS Details are not getting updated to COPA in Sales Order Settlement(VA88)
Dear Experts,
Our scenario is MTO with valuated material.
1. Production order is tagged to Sales Order.
2. Production order is settled to Material and variance is getting posted to COPA.
3. At the time of Delivery, COGS Debit (Cost Object- Sales Order), Credit - Inventory.
4. At the time of Billing, Accounting Document is getting generated, COPA document is not getting generated.
5. We are not executing WIP. (as per Business process)
6. Settlement is done thru transaction code VA88. COPA Document is getting generated.
I am facing the following issues in the above MTO process.
1. At time of sales order settlement thru VA88, In COPA, only COGS is getting as updated with one value field i.e. Material Cost. Cost Component data (Material Depreciation, Labor etc..) is not getting updated to COPA.
2. When I settle the Sales Order thru VA88, Billing Quantity is not getting updated to COPA though Quantity field mapping is done properly.
Please help me how to resolve the above issues.
Note: Same Cost Component Structure, we are using for Make to Stock scenario. Cost Component Data is getting updated Properly to COPA (at the time of Billing)
Regards,
vgl
Edited by: vglokam on Aug 31, 2010 10:52 AM
Edited by: vglokam on Aug 31, 2010 10:54 AMHi
1. CCS (Cost Comp Split) wont be updated to COPA if you settle via sale order.. In sale order, COGS cost element is posted.. the same will get settled to COPA as one single value...
In MTS, the CCS gets updated to COPA upon billing because of the "valuation" strategy customization... Billing posts to COPA in that case, COPA gets Sales Qty and it is valuated with CCS to give you the break up.. But, in your case, Billing is not posting to COPA, but to sales order.. hence, there is no qty flow into COPA upon billing.. thats why you dont get CCS for MTO
2. The sales qty should be updated to COPA upon VA88.. For this, make the following settings in your PA transfer structure which is used during VA88
1. Go to KEI1, Select your PA transfer structure...
2. Add an assignment line in it... Check on "Qty Billed/Delivered" in the assignment line
3. In the Tab "Value Field" below "source", assign Qty Field
Now when you settle, it should update qty as well
regards
Ajay M -
Cut off period for sales order settlement
Dear Expert,
Client using SAP from last 13 years. Client implemented MTO with valuated stock and activated the COPA.
Now we are re implementing the COPA. since go live(from last 13 years ) they are not doing any sales order settlements and not using COPA.
In sales order RA key(Requirement class) is assigned and Settlement type is 'FUL'.
Now client has decided to use COPA and going to live with new structure on September 1 2014.
I have do the below changes
1. Removed RA key(Not required as per business requirement)
2. Changed settlement type from 'FUL' to PER., here i am having some questions. Client don't want to settle previous orders(before September). as per business requirement they will use one sales order for long time (3 to 4 months). after going live client will settle the sales orders at that time system will consider all sales orders. How can i avoid selection of all sales orders. i want to settle only sales orders having transactions during one month (September)
To avoid this problem now its self i am moving this changes to Production client (RA key removed and Settlement type change), still i am not confident i will get as expected, because at the time of Sales order settlement system will consider all old sales orders.
Can anyone please suggest beat way to handle this issue...
Thanks.
ChandrasekharHi Chandra,
Check the Below SAP Note
174815
- Selection parameter in VA88 or RKO7VA88
Symptom
During the settlement of sales and distribution documents with Transaction
VA88 or report RKO7VA88, you can only select according to the SD document number
or the sales organization.
For example, you cannot select by plant or SD
document type.
Other Terms
VA88
Reason and Prerequisites
The problem occurs due to a previous program design.
Solution
With the attached advance correction, you can also select according to the
plant or the SD document type in report RKO7VA88.The previous restrictions apply
for Transaction VA88.
To correct the error in advance, proceed as
follows:
1. First implement Notes 174502 and 182735.
2. Using Transaction SE11, add field VBAUART (data element AUART) to
structures LKO74 and RKASS. Activate the structures.
3. Add the following parameter to the interface of function module
SD_DOCUMENT_OBJNR_GET (Transaction SE37):
a) Import parameter:I_WERKS (reference field VBAP-WERKS) and I_AUART
(reference field VBAK-AUART). Both parameters should be indicated as
'optional'.
b) Export parameter:E_WERKS (reference field VBAP-WERKS) and E_AUART
(reference field VBAK-AUART).
4. Implement the source code corrections.
5. Maintain the text elements for report RKO7VA88 (Transaction SE38, Goto
--> Text elements --> Selection texts):Text 'Sales document type' for
VBAUART and 'Plant' for WERKS.
Afterwards, also implement Note 210011.
Regards
Srinu -
Statistic condition values not updated during Sales order Settlement
Hi,
In our client we have different Price condition types for based on scenario wise. Ex: Domestic Sales (ZPR1) and Export Sales ZPR2. I have maintained separately value fields for each price condition types.
We are booking some financial charges, and interest on working capital etc., this cost we need to transfer to COPA each Material wise based on sales revenue.
For this purpose we have created one COPA Assessment Cycle. Tracing factor is Sales Revenue and receiver is Materials.
In COPA Assessment cycle we can give only one base means ZPR1 related value field or ZPR2 related value field.
For this reason we have created one new statistic condition type, what is amount there in ZPR1 that amount will updated automatically in statistic condition place and so that we can give once one trance factor in COPA Assessment Cycle. We have assign this statistic condition all pricing procedure
Now my problem is in MTS scenario statistic condition values updated correctly. But in MTO scenario sales order settlement time statistic condition values not updated.
So is it possible update during sales order settlement time statistic condition values.
Please give me suggestion.
Regards,
ThiruHi Ajay Sir,
As you said is correct.
But in our client we have around 9 Plants and each plant manufacturing product are different. Client Requirement is in COPA Report they need see each product wise sales revenue. In this way we mapped product wise value field. System already mapped one guy in this way earlier. Now I am doing some changes for relevant to month end activities.
Some financial changes transfer to COPA each plant wise on Material. Here sender is cost center and receiver is Material. Base is Sales Revenue.
Please suggest me is there any alternative.
Regards,
Thirumalesh . -
Hi Friends,
I am using VA88 for the first time. When I am running VA88 for a particuar sales order, it is giving me a message " No settlement for this sender ". What all config settings I have to check in this.
Kindly explain me with path or TCodes.
KumarHi
It is always good to search the Forum before posting any querry.
Even I am not aware too much about VA88, but searched and found this, check the link:
[Re: Production Order Settlement - Make To Order]
[Re: MTO to COPA]
serach the forum and you will get more.
Regards
Amitesh Anand -
Hello Friends,
We are working on Make to Order scenario. We are making the process order with reference to Sales Order.
My question is, whether we should settle Process Order and Sales Order both at the Month End?
Can anyone help me in such process as to which steps to be performed in such scenario? When i am trying for VA88 for salea order, I am getting the following message.
There are no accrued amounts; settlement is not possible.
Message no. KD256
Diagnosis
The sender has a results analysis key, but no accrued values.
Either the accrual was not yet started for the sender, or the values to be settled from the accrual equal zero.
Note
Actual costs are only settled once the sender is technically completed or finally delivered.
This applies to
> Projects that cannot carry revenues
In Service Management for sales order production to the indicator (Calculate WIP for orders in sales order production) set in the accrual version for
> Production orders
> Internal orders with no revenues
> Orders with no revenues
In Service Management for engineer-to-order production to the indicator (Calculate WIP for orders in engineer-to-order production ) set in the accrual version for
> Internal orders with no revenues
> Orders with no revenues
In Service Management to the indicator (Calculate WIP for internal and service orders with no revenues) set in the accrual version for
> Internal orders with no revenues
> Orders with no revenues
To the indicator (Calculate WIP for production orders without settlement to material) set in the accrual version for
>Production orders without settlement to material
Procedure
1. If necessary, start the accrual calculation for the sender
2. Restart settlement
Please help me.
Regards,
JigarHi,
Thanks to all for valuable reply.
I checked all the settings in OPKT and OKG8. Also the settlement rule crated as SDI (Sales Order Item), because Process Order is having the reference of Sales Order. it is going on perfect till process order.
When i try to calculate the process order variance via KKS2, i m getting above mentioned error. Should i run Variance Calculation for Process Order in MTO Scenario or i have to run VA88 and KKAK as Mr. Ram told?
I am confused regarding MTO Process scenario particularly for Costing.
What should i do further?
Regards,
Jigar
Edited by: Jigar Thakkar on Aug 8, 2008 11:47 AM -
Hi all,
While carrying out production order settlement for a production order, the system is determining the wrong GL A/C. Well it's deriving the GL A/C which does not exist. I need to change this assignment to a valid GL A/C. How am I suppose to fix this?
It's an MTO order, settlement cat. SDI. I'm not sure why the settlement rule is SDI for this specific order too, normally it should be MAT.
Regards,
G. CoelhoThe valuation now is for sales order is incorrect. SDI means that the sales order stock is non-valuated and sales order is used to capture the costs. This is because the requirement class of the sales order is incorrect.
First check the requirement type in sales order (VA03). In procurement tab of the first main screen, it will show the requirement type for your sales order item.
Then check t-code OVZH, there will be a link between requirement type and requirement class.
Then check OVZG to check the requirement class.
(If you want to change, use the config.path Controlling -> Product Cost Controlling -> Cost Object Controlling -> Product Cost by Sales order -> Control for Sales-order-related Production... -> Check requirement class. Howeiver, this should be done after you consult with SD and CO consultant)
You will see the your requirement class. Check whether account assignment cat., and valuatio are both set to M (ind.cust.order w/o CO, and valuated sales order stock). I suspected that a sales order per your issue is set to non-valuated stock (Account Assignment E, valuation blank).
Hope it helps.
Edited by: ayethebing on Jul 16, 2010 1:34 PM -
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,
RioHello,
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 -
how order settlement is done in production planning
Settlement of production order
When you do the settlement, the cost which is not yet settled will be settled.
Example
Std price in material master of product is 100 USD
Actual Raw material cost = 70 USD
Actual Activity cost = 40 USD
Actual production cost = 110 USD
When you Do GR, the from production order the std cost is deducted, then the left over cost in production order 110 u2013 100 = 10 USD.
This 10 USD will be settled to material if the material price control is V, if S, then the cost will be settled to a variance account..
Furthur settlement is controlled by settlement rule-
Settlement rule is we are defining that the left over cost, where it is to be settled?
Which object is settlement sender and which one is receiver? is defined in settlement rule
Example - In case of production order...production order is sender and material/sales order/WBS element/cost center or another order may be receivers.
hence unsettled amount *(i.e. total debit - total credit in production order) in production order it may be -ve or +ve will be settled to one of the above depending on what type of order it is i.e MTO-sales order/project...MTS etc
Where to see this rule
In production order - follow the menu path - Header --> settlement rule
How to check the Production order is settled? - In production order follow the menu path
Goto>costs>balance...if it is ZERO and the order has TECO/REL/DLV status then we can say that order is settled -
Sales Order Settlement to Only WBS
Hi,
I have scenario like Sales Order Settlement to only WBS in make to order.
Again from WBS settlement to COPA.
So far I know WBS settlement to COPA and I am not sure in the 1 st scenario.
Can you any body tell me where I need to configure, is it only settlement profile or any other settings required?
Thanks & Regards,
KBRHi,
What is the business rational to have a 2 step settlement to COPA?
Thank you and Regards,
Varshal Kachole -
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.
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,
Pradeep
Edited by: Pradeep Giri on May 30, 2009 4:07 AMHey 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.
The cost is picked from the order and deposited on the P&L account which is now attached to the fund and this is further transferred to the balance sheet account with the fund information.
Problem solved.
Do you see any other implications on this?
Thanks again.
Pradeep -
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,
PradeepAshok,
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 -
Using a different Sender GL in Internal Order Settlement
When we settle an Internal Order from GL/Cost Element 1 to Fixed Assets, we get:
Dr: Fixed Asset
Cr: GL/Cost Element 1.
For various reasons, we do not want to Credit the original GL/Cost Element but rather another one.
Does anyone have any sugestions as to how this can be achieved?
Thanks.Hi
Can you tell me what is meant by "Internal Order from GL/Cost Element.."?
As per the functionality, when you settle an internal order, something is moved from the intrnal order and put to another. Hence the place from where it is moved is credited and the receiver is debited. The internal order has postings through the cost element you have posted. So the movement is from what the internal order has in its account.
Order settlement is done through a secondary cost element created and this cost element is used for debiting and crediting the sender and receivers. Hence your idea of using a totally different GL/Cost element (of course that do not have postings with respect fo the internal order in question) is not practical, I hope. -
For internal order settlement rule amount column is requied instead %
Hi Gurus,
For internal order settlement rule percentage is there but business wants to settle from AUC to final asset by amount wise how can we do this.
I tried to change the investment profile but it is coming amount field while saving it is not displaying.
Please help in this regard
Thank you.
RanganadhHi
Check the path
IMG>Controlling>Internal Orders>Actual Posting>Settlement>Maintain Settlement Profile>Maintain Settlement Profile.
Here there is a tick for amount settlement under Indicators. You need to maintain this check box for your requirements.
Regards
Sanil Bhandari
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