Problem in overhead calculation of production order after TECO

Dear All,
Just for reconfirmation can you tell me what is the actual sequence of steps used in Closing of Production order i.e
First we have to do TECO of an order and then we have to calculate Overhead.(KGI2).
I am asking this question because i have observed that order which are get TECO before Overhead calculation, if you see the cost analysis, system will not update overhead value in order and the difference get posted in Variances after settlement.
If we have to do vice versa then there will be the problem as user do the TECO of an order as an when production order completed, overhead calculation is the work of costing department and they will do it at month end only hence system will always post variance for the overhead value.
Kindly suggest.
Regards,
Shayam

Hi,
Normally, you need to check the transactions allowed when the status TECO is set. However, status is set only when the sequence of the steps are completed during month end. Transactions like the WIP, variances, settlement etc as you may have bach jobs running to set the status.
Kind Regards
Umapathi G

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Overhead calculation for production order

Hi,
I configured costing sheet and cost component structure. I have given the overhead rates for materials and production costs also. I have a doubt related overhead calculation.
When i have to actual overhead calculation after CK11N or before CK11N.
Please guide me series of steps
Sateesh Kumar

Hi Sateesh,
Once you execute CK11N or CK40N Overhead is calculated for the material and Save.mark and release standard cost and overhead part of your standard cost.
To apply actual overhead to prodcution order,you should assign costing sheet to production order.once you issue goods to production order,you can run KGI2 transaction to apply overhead to prodcution order and credit to cost center/order/business process.
If this helps,please assign points.
Thanks,
Rau

Planned Overhead Calculation in Production Order

Dear Experts,
I have created one costing sheet, with the following:
1. Base has been taken as Expenses GL(Office Expenses)-Primary Cost.
2. Overhead rate has been define 50% for both planned & actual with dependency as profit center(D080).
3. Credit has been defined with scondary cost element with cost center.
4. Assigned cost component with above secondary cost element in cost component structure.
5. Assigned cost component structure in version.
6. Assigned costing sheet in valuation variant
7. Assigned valuation variant in costing sheet.
I have posted the Fi document in the expense gl.But no values are coming in prodction order in costing.
Please let me know if i have missed any thing. Thanks in Advance.
Regards,
Kapil

Hi Srinivas,
Thanks for your quick reply. I have tried with base with cost element category 43. But no valuea are coming. Please tell me how the overhed will be calculated on this base cost elements. On which amount system will calculate the planned & actual overheds.
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Variance calculation for production order

Hello,
I am clarifying what's the selection criteria for settled production orders so that we can carry out the following
close and deletion flag activities.
I am currently in release ECC605. Need to carify the below questions.
1. For production order without header material (dismantle production order), no need to do variance calculation before
settlement,right? Because I found system will respond green light but "no order was processed", this kind of production order
won't possess "VCAL variance calcaulted" system status.
2. For all production orders created with header material, vairance calculation is a must, even the variance is 0.
So the production orders will possess "VCAL" status after variance calculation transaction is done.
Thanks for your help in advance.
B. Regards,
Nancy

How does input variance and output varia.nce will be calculated on the settlement of production order after TECO.
VARIANCE CALCULATION DEPENDS ON CONFIGURATION IN THE FOLLOWING AREAS,
1) VARIANCE VARIANT - DETERMINES WHAT VAREIANCE CATEGORIES ARE CALCULATED, E.G MATERIAL PRICE , USAGE, LABOUR RATE , USAGE VARIANCE ETC..
2) TARGET COST VERSIONS
3) VALUATION VARIANT FOR WIP AND SCRAP
Can we check in KOB3 or COOIS.
KOB3 - YES
COOIS - CHECK IN COST REPORT

Actual activity price calculation for production order

Hi
Can any one guide me in how many ways we can assign actual activity price calculation for production order?
I knew only one way by assigning PPP2 costing variant?
I have another doubt is: if we don't mention any material valuation indicator (moving average, standard) in valuation variant, how system will calculate material prices? is there any other way, to recognize the prices by system?
regards,
Ramesh B

Dear,
Costing variant PPP2 is linked to some valuation variant inn OPL1
System will check the valuation of material and activity according to this valuation variant
For material valuation there are many stg acceding to which system will take the price the raw material,
Valuation strategy for material component
Strategy sequence that determines the valuation of the materials used in the cost estimate.
Use
The materials are valuated using the price in the material master record or the values calculated in a material cost estimate.
Procedure
You can enter a single strategy, or you can enter multiple strategies in the form of a strategy sequence. If you enter multiple strategies, the priority of the strategy determines what price or what values are selected.
Examples
Assume that the following strategy sequence is entered for material valuation:
1. Planned price 1
2. Standard price
3. Moving average price
If the system finds a value in the Planned price 1 field (costing view), this value is taken as the value for valuating the material.
If the system does not find a value, the value in the Standard price field (accounting view) is used.
If the material does not have a standard price, the system uses the value from the Moving average price field.
if you have not mentioned, then system will give error that "valuation stg not found"
Valuation strategy for internal activities and processes-
Strategy sequence that determines how internal activities and processes are valuated in costing.
Use
The activities and business processes used are valuated with the prices from Cost Center Accounting or Activity-Based Costing to determine the production costs or process costs. The prices can either be calculated iteratively through price calculation, or entered manually by the user.
Procedure
You can enter either a single strategy or more than one strategy in the form of a strategy sequence. If you enter more than one strategy, the priority of the strategy determines which price is selected.
Examples
The following strategy sequence is entered:
1. Actual price of the previous period
2. Plan price of the previous period
3. The most current plan price
If the system finds a price for the activity type, this price is used for valuating the internal activities. If no price was calculated for the previous period, the plan price from the previous period is used to valuate the activity type.
If the system cannot find a plan price for the previous period, it looks for a future plan price, using the next price in the posting period to valuate the internal activities. For example, if plan prices have been entered for periods 2 and 3, and a plan price is calculated in period 1 for period 4, the system uses the price from period 3 in accordance with the valuation strategy Most up-to-date plan price.
Again if you have not mentioned, then system will give error that "valuation stg not found".
You can use any costing variant for actual (PPP2)and planned(PPP1) according to your requirement.. check in OPL1

Upgrade production order after modification BOM

Dear Gurus,
we need upgrade the quantity requirement in the production order after the modification the quantity in the Bom ?
Is possible read newly the Bom whit the one operation confirmed ?
The component modificated don't allocated a this operation but for example a the operation in status initial.
Thanls a lot
PP TEAM
Daniele Pistilli

Dear Toto,
if only one operation is confirmed then cancelation for that operation
then go for READ PP MASTER DATA option
or if u have relesed only one operation & confirmed only that operation (not full order)
then try to change in component in PRD prder itself in CO02 & realse that particular operation & confirm it
check & revert back
Regards
kumar

Variance calculation for production order with settlement receiver as SDI

Hi...
I have one query reference to Variance calculation for production order with settlement receiver as SDI(Sales document item).
I am working on Varaint configuration with strategy 25(Make-to-order for configurable material) with requirement class 046.
I have created sales order ref. to configurable material,subsequently created planned order & then converted to production order.
In production order settlement receiver is SDI(Sales document item).
While doing production confirmation ,variance has been created.
Now during variance calculation KKS2, I have got error message as no suitable settlement rule found for object Order no.
Is there any way to come out of this?Or variance calculation KKS2 is not applicable with settlement receiver as SDI(Sales document item).
Pl. guide
Redards
Tushar

Hi
In case of non valuated material, concept of variance does not apply...
Variance is Actual Cost - Cost of Goods receipt posted in stock.. If the later value is zero, your entire actual cost is variance... That is one way of saying it
But, in SAP, var not calculated in case of non valuated material and that makes sense as well.. Since you are in MTO scenario, it would make sense to analyse costs vs revenues @ sale order level as each SO will be unique in itself
Regards
Ajay M

Every time system create new production order after releasing sales order c

Hi Guru,
FG material strategy: 82 (sales order creates production order).
After creating the sales order it goes in to credit block. Whenever we release sales order from credit block through VKM1, system has created production order. We confirmed this production order and delivered.
But after this sales person change the sales order value, because of which again sales order goes into the credit block and after releasing sales order from credit block system create new production order even if one production order already confirmed and delivered against the same sales order.
*Every time system create new production order after releasing sales order credit block.
Thanx & regards
pnu

PNU,
So, to restate:
In MD04, you have Unrestricted Sales order Stock ('E' Stock) on hand.
In the same MRP segment, and against the same Storage Location as the stock, you have a Sales Order requirement that was recently blocked and unblocked.
During the unblocking event, the system produced a new production order.
This is not normal. If the above accurately depicts your situation, I would look for an altered Strategy 82, or a userexit. SAP ATP (the beginning event of the Strat 82 process) will normally first check for the availability of stock. Only if the stock is not available, then it will create the new production order.
Best Regards,
DB49

Overhead Calculation for Internal Order

Hi Gurus,
I have created one internal order and made the reservations.
I have configured all Overhead Keys and Overhead Groups. I have also maintained the rates for the same.
Now while i m running the overhead calculation for internal order, I am getting below stated result:
Y141 Machine Cost 5000 INR 100 KG Rs. 555.27
Y142 Labour            60    INR 100 KG Rs. 1110.54
Y143 Utility              60    INR 100 KG Rs. 2221.08
Y144 QC/QA Exp     5000 INR 100 KG Rs.4,442.16
Now u can see that overheads are doubled evrytime. I have made the configuration perfectly. I m demn sure abt it.
But i think i m lacking somewhere because such kind of ridiculous overhead should not come.
Pls help me in this regard.
Hope to get back u frnds!!!!!!!!

hi
check work center settings. i.e capacity calculations
regards,
sreekanth

Production order status TECO-Revoke implications in FI/CO

Production order status TECO can be revoked functions -
> restrict processing -
>revoke
Can any one tell me the activities happening while revoking teco.
is it possible to revoke the teco for an order which has been closed in the past and financial closing also over for that period.still if we want to do what kind of implications r there in system point of view.

Hello
Production orders pass through various phases. These phases are expressed by the status of the production order:
The production orders are first created (CRTD).
The orders are then released (REL).
The shop floor papers are printed out (PRT).
The production orders are carried out. The produced quantities, services, and deadlines are continuously (partially) confirmed (PCNF).
Final confirmation takes place (CNF).
The production orders are technically completed (TECO).
Finally, the production orders are flagged for deletion (DLFL).
Process Flow
When you create a production order, a workflow can be started to inform the MRP controller of the current production order phase.
Note that a large number of work items may be created in this scenario. If a large volume of production orders is created in your production system, therefore, you should not use this scenario.
The work items are deleted at the latest if a deletion flag was set for the order in question.
If this scenario does not fulfill your requirements, you can use it as a template to create your own scenario.
regards

Deleting the reservations for components of a production order without TECO

Dear Gurus,
I forgot to activate the backflush indicator in the beginning. I activated the backflush indicator in between. But for the confirmations already made I had to issue the material as unplanned consumption for the order. This is not clearing the reservations for the material.
How to delete the reservations for components of a production order without TECOing the production order? My order is not completed.
Thanks and Regards,
Raghu

Hi Kumar,
I have a production order for 1000 header (A) qty. My control key is PP03 (auto goods receipt from confirmation in CO11N).
For this order the component B qty is 1000 (BOM consumption is 1:1)
Without doing GI, the confirmation is done for 300 A qty. I realized that auto GI is not done for the 300 qty of component B as there was no backflush indicator.
Now the backflush indicator is activated in the production order for component B.
In the next confirmation for another 300 A qty, automatic GI is posted for 300 B qty because of backflush now.
Now my confirmed and GR qty for A in two rounds is 300 + 300 = 600.
GI of component B done is only 300 (through backflush).
Qty yet to confirm = 400.
So I did GI of 300 B qty through MB1A (which is an unplanned issue). This does not update the withdrawn qty in the production order. Also the reservations for component B for this 300 qty are not reduced in the system.
Now the reservations against the order for component B = 1000 - 300 = 700 (which is 300 more than the qty yet to confirm).
Now when I run MRP for another 2000 qty of A, the procurement proposals for B will be 2000 + 300(undeleted reservations) = 2300. Though the system is behaving properly, this 300 is additional and unwanted.
For this reason I need to delete these reservations before the MRP run. As order is still open, I cannot TECO the order. Nor can I clear all open reservations from CO11N.
Thanks and Regards,

Material backflush in production order after finished goods GR

Dear all,
I once started similiar topic several months ago, but didn't recieved any response. I'm gonna give it another try, so maybe you'll be able to support me after all.
So, the situation is like this. We have a production order, in which MC team maintained the materials to consume. The problem is, that very often it comes that we have to use same material part, but under 2-3 different partnumbers. E.G.:
Production order target: 1000 finished goods
Required materials: Part A 1000 pcs, Part B1 700 pcs, Part B2 300 pcs, Part C 1000 pcs, Part D1 150 pcs, Part D2 450 pcs, Part D3 400 pcs.
So yes, in case when it is Part B1, B2 and etc. it means that we're using physically the same part, but under different partnumbers. The problem is, that those material are all coming in pieces, not in meters or anything, and we can't allow to have, for example, 0.7 pcs of any of those materials (cause obviously you can't have 0.7 pcs of LCD panels stored in the warehouse).
It wouldn't be a problem if we could just confirm all operations in production order in 1 batch, but production order is being confirmed partially, every time the pallet with finished goods is being released from production line (we have integrated system, that sends requests to SAP to confirm specific quantity of finished goods in production order). So, as an example, if 1 pallet contains 15 pcs of finished goods, you have 67 confirmations for production order [(66*15)+(1*10)]. And, since all those materials come in PCS, SAP is rounding up consumption if it has decimal, which leads to wrong materials consumption.
Initially, I had an idea of adding 1 more operation in production order, which was supposed to be a manual use only, after finished goods GR, and MC team supposed to assign those B1\B2 and etc. material to this operation E.G.:
Operation 0010 - consume material from work center A
Operation 0020 - consume material from work center B
Operation 0030 - finished goods GR (milestone)
Operation 0040 - consume material from work center C
My idead was rejected, since I was told that after GR for finished goods is done and you continue consuming materials in production order - it will not be shown in financial reporting (don't know the details, it was quite a straight reject, without much explanation).
So, question is - is there a way to consume materials after finished goods GR without creating mess in financial reporting, or if not - what other options do I have?
thank you in advance

Hi Valentin,
After GR also you can do goods issue. Till the order status is CLSD (Closed) you can book cost on to the order.
Two ways to consume materials on order.
In order component overview maintain the required part number with quantity. GI as can done with reference to order MB1A 261 movement type.
Directly do GI with MB1A -261 movement type - Input the order number, material number and qty.
Refer to the below discussion on unplanned GI which was discussed yesterday,
http://scn.sap.com/message/14850196#14850196
Thank & Regards,
Ramagiri

Problem with final issue of production order components

Hi Gurus,
Currently we have a problem with the production order components.
The problem is that, we needed some components (components which are categorized as dangerous goods) deleted from the production orders.
So we tried to manually tick the final issue indicator and save the production order. However, the reservations reappeared after the MRP Run.
Hence, we then tried to delete the component line items, but then again the reservations reappeared.
Also, since the components are externally procured materials, new purchase requisitions are generated by MRP for these materials.
Kindly request your help on the same.
Thanks and Regards,
Sanju

Hi Kiran,
Please find the screenshots of MD04 for the header and component in the attachment:
MD04 for Header:
MD04 for Component:
For the header material no entry is available for 07.01.2015 as the status is delivered for the production order of the header material.
Kindly help me with the same.
Thanks,
Sanju

Wip calculation in production Order

Hai friends
Can any one tell this 2 tcodes in Co . tell me these two codes KKAX,
KKAO why we use and how to calculate tell me clearly WIP functonality.

Hi,
WIP :
The WIP calculation process valuates the unfinished products (work in process).
In the Product Cost by Order component, the work in process is valuated at actual costs. Work in process is the difference between the debit and credit of an order that has not been completely delivered. This method determines the work in process for each production order by calculating the difference between the actual costs incurred and the actual costs settled (that is, the difference between the debits for goods issues, internal activity allocations, external activities, and overhead on the one hand, and the credits for goods receipts on the other). Once the last part of the order lot has been delivered to stock, any remaining work in process must be canceled so that the order costs can properly be settled to stock.
The status of the order determines whether WIP calculation creates or cancels the work in process.
u2022 If the order has the status REL (released), the system can calculate work in process.
u2022 Once the order receives the status DLV (Delivered) or TECO (Technically completed), the work in process calculated in a previous period is canceled.
for this you have calculate WIP for every order.
KKAX- this T.code is used for single order process.
KKAO-this T.code is used for collective process,here you process by plant.
Hope this is helps you.
Thanks,
Rau

Variance in Production Order after settlement

Hi All,
We have few production orders in whihc has been settled, but now after settlement also there is a balance left in those production order.
The Status of these production orders is DLV. I have reversed its previous settlement now again tried to settled the Order. Aftter settlement it is taking the entry for WIP account and it is not effecting our Prod Var account.
Please help how to settle the order and any clue why system is still showing the balance.
Thanks!!!
Regards,
Vivek Srivastava

Hi Vivek
I think you are in Prod Cost By Period scenario i.e. Settlement Type in your Settlement rule is PER and not FUL
In the case of Product Cost By Period - Variance calculation is not dependant on Order Status
Since you are saying you have DLV status and yet going to WIP - This means you are in PER scenario
Your order will show the balance till the time you settle for all the periods in which the values have been posted to the prod Order
Press (CTRLSHIFTF11) to see the values posted in each period.. I think values have been posted in the next periods also and you have not executed settlement for those periods
Br, Ajay M
Edited by: Ajay Maheshwari on Feb 27, 2011 2:01 PM

Problem in overhead calculation of production order after TECO

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