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

Similar Messages

  • Production order settlement posting

    Hi all,
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    Dear,
            In production order, there are 3 elements. 1 Material consumption 2 inventory change and 3 is confirmation on which planned cost and actual cost is determined.
    Material consumption and inventory change is directly relevant to stock of materials but confirmation is only relevant to activities e.g. labor, machine, FOH and setup.
    Settlement is difference of plan and actual cost on production order. This difference can be due to either first 2 elements or 3rd element i.e. activity. That's why it can not be "inventory' account".
    Thanks
    Muhammad Ashfaq

  • 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 variance button

    Hi,
    I check the settlement of production order and would like to clarify.
    In the settlement rule, the account assignment category is MAT, when double click the rule or click settlement variance button, it shows category PSG.
    why there are 2 settlement? for settlement to asset, there is only 1 and no settlement variance button.
    so why production order settlement has 2 settlement?
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    Hi,
    On settlement of Production order, two documents gets created one is Accounting document for posting the variances to Accounts and the Profitability analysis documents.
    This is because, when COPA is activated, the Sold quantity in copa is valuated using the Standard cost estimate.
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  • Production Order  Settlement After Process

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    Thanks,
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    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.
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    > Technically Complete. You can carry out TECO for multiple Orders in Tcode : COHV
    (Mass Processing).
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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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  • Authorization check for production order settlement

    Hi All,
    Production order settlement currently can be done by any user of any company code. there is a high risk involved in the same since unauthorized postings may happen. Hence we need to add authorization check for production order settlement. Can we maintain the same at the plant or the company code level?
    Waiting for your replies. Thanks in advance!
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    hi
    What venki has told abt the exit, its absolutely correct.Even i have used the same exit
    •     From table CAUFV pick Material(PLNBEZ),Basic Start Date(GLTRP),Plant(WERKS) .
    •     Pass parameter Material(PLNBEZ) and Plant(Werks) in table MBEW in respective fields i.e. Material(MATNR) and Plant(WERKS).
    •     Pick the latest record for the current period(LFMON) and year(LFGJA).
    •     Pick Product Cost Estimate number(KALN1) from the record and pass it to table KEKO.
    •     Check if Production Order Basic Start Date(GLTRP)<= BIDAT, if NO post Error Message.
    This is the FS for EXit PPco0007
    Reward if useful
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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,
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    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

  • 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.
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  • 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.
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      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

  • Production Order Variance not posting to COPA

    Hi,
    I am hoping someone can help.
    We settle our production order variances to COPA. - usually without any problem. The production orders settle to both Material (Mat) and PSG
    However this month we had a situation where for 2 order there was no settlement to COPA for the variance.
    For these 2 production orders there was no settlement rule to PSG in the master data so this obviously explains why it didnt create a settlement document but my dilemma is understanding why there is no PSG settlement rule.
    Through testing it appears that the PSG settlement rule is not created at the time of production order creation at all but seems to be automatically created after the execution of KKS2 and CO88.
    The 2 orders that I had  issue with this month were for a new material and I am able to recreate this probelm for any new Production order against this new material. So I suspect that there is something specific to this material that is prveventing the PSG settlement rule from being created.
    But this is where I am stuck! I can't find any setting in material master or other area that would seem to impact this.
    Any help appreciated,
    Thanks,
    Tracee

    Hi,
    First you can settle these 2 orders individually with using KO88 Transaction code and see if there is any error. Also check the settlement profile of these 2 production orders.there you can check the " variances to costing-based PA" tick is there or not.If tick is not selected there,you can select the check box and run variance calculation (KKS2) and do the settlement for these 2 production orders (KO88).
    I hope this wil help you and let me know if you have any queries.
    Regards,
    Puri.

  • Production Order Settlement Process with respect to  a Project

    Hello All,
    I know about normal Production Order Settlement Process in discrete industries.
    Can anyone give me the steps for the Production Order Settlement Process if the Production Order is created with respect to a Project in SAP PP- PS Integration Scenario.
    Thanks in advance for your support.

    Hi Experts,
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  • 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
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    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.
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    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
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    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
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    HI,
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    Chris

    Dear friend,
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    Mubashir

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    Dear Friends,
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    Senthil

    Hi Mahesh,
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    But i have found the information under "Header----Settlement rule". Here we can find the details about settlement period (First used and last used).
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