Production Variance settlement to COPA

Hi Experts,
Here I have scenario regarding the production variance.
production requirement is 100 units
but the actual produced quantity is 110 units.
here we have a production variance of 10 units
Which is reflecting the report as following
My COGS is 10000 Rs
Split of the COGS
input material is 11000 Rs
labour is 200 Rs
machine is 300 Rs
Here my COGS posted to GL account is less than the actual production, which is posted as per the sales order
Here where do i get the production variance, how to find out the quantiy variance and price
Please help
Regards,
Ram

Hi
Execute KKS1 / 2.. After that settle the prod order to COPA from KO88....
you can see all the categories of variance in CO03...Menu Go to > Costs > Analysis and change the layout and include all the categories of variances
Br, Ajay M

Similar Messages

How to see PO Variance settling in COPA

Hi All,
When did the Production order variances are settled and posted to COPA and How can I see the Variances settling to COPA ? Is there any report or it is posted to COPA when Billing document is generated ? I would appreciate a step by step explanation.
Thanks
MKR

Hi,
KKS1 and KKS2 for variance calculation
CO88 and KO88 is settlement variances
once you done with settlement
goto KE24.
enter Curreny Type : 10
Record type : "C"
Enter : product or material number
now you will see lis of documents and double click on your document. now goto Value field tab and you will see production variances are posted to respective value fields.
OR if you are created any Report painter report in COPA and you have mapped Production variance value fields you will in respective value feilds.
Thanks,
Rau

Process orders in joint production: variance settlement to CO-PA

Dear all,
During integration test for costing based CO-PA, I have a problem regarding production variance settlement to CO-PA. I am testing CO-PA actual flows for november 2011. When I try to settle process orders with co-products for previous month, the system asks for PA transfer structure. Because of customizing setting for settlement profile being transfered later, previously created process order need to have this info, and i assigned PA structure manually in settlement rule for each process order. When I repeat variance settlement, only for process orders with co-product, the system still asks for this information, although I already had assigned PA structure to this order.
please give some advice.
Thanks Dusko

Hi
You may have 2 settlement rules for CO Products... So ensure you enter PA Trf Str at all the places... This error is never thrown by SAP w/o valid reason
br, Ajay M

PA structure in Variance Settlement to COPA

Hi gurus,
When i'm doing the variance settlement from production orders to COPA the system ask me for a PA transfer strucutre 'Message KF018' , to update with the cost element from operation PRD.
In CO-PA I have the two scenarios active costing based and account based.
Anyone can help me ?
Thanks

Hi Diogo,
You have to complete the PA transfer structure that is mentioned in the order. In order to do that you need to:
1) Goto tcode KEI1
2) Create assignment lines that is in line with your variance categories. In order to do that you have to go to "Source" of the each assignment line and select radio button "Varance on PP Orders"
3) Select the "Variance Category" from the drop down menu
4) Goto Value Fields for each assignment and assign them to the Value Fields.
5) Assign this PA trf structure to the settlement profile, if you haven't done so yet
This is for costing based PA.
I hope it helps,
Dave

Activity variance and production variance seperate in COPA

Dear experts,
My client wanted to break production variance(ko88 in two parts in COPA reports
Total material variance
Total Activity variance
What i am thinking- In PA transfer structure of Production order.I will create four assignements
1)Material price variance-Only RM cost element(Cost element Group)-Price variance category-Material Variance(value field)
2)Material QTY variance-Only RM cost element(Cost element Group)-Qty variance category-Material Variance(value field)
So both assignment linked to material variance value fields.
same way for activity
1)Activity price variance-Only Activity cost element with 43 categoryt(Cost element Group)-Price variance category-Activity Variance(value field)
2)Activity QTY variance-Only Activity cost element with 43 category(Cost element Group)-Qty variance-category-Activity Variance(value field)
So both assignment linked to activity variance value fields.
Is it works for the above requirements or I will face any technical difficulties.
regards
RR

Hi
For sure, it will work....
Another approach can be to update the variance as per cost component structure instead of variance categories in COPA.... Stil the category wise variances can be seen in Other CO reports like Co03 / KKBC_HOE/KKO0 reports
br, Ajay M

Production Variance Settlement.

Hello friends,
Hope you all are well!
Is there anyway that I can settle the production variances into different GL accounts at the same time? For example I have $1000 as the variances on my order. It is further divided into $200 for material another $800 for material overheads.
This $1000 is posted into a price difference gl a/c when settled. I would like to capture only the material cost i.e. $200 and post it into a different account. Is that possible? If so, how please explain.
Your help is much appreciated
Regards
Shiv

Hi Shiv
Try this if it helps u in addition to KOB3
For variance analysis you can use report S_ALR_87013127 - in Object list node in cost object controlling.
This is one of the best available reports u can use since it gives variances for all order types in all plants and company codes
Once u select the parameters, go to the layout and select all variances fields listed and save your layout so that u dont have to do it everytime.
I have been providing this to clients and is used for analysis and corrections to orders etc.
Also, there are quite a few reports not only on variance analysis but on WIP but in most of these reports the selection parameter is a single order instead of all orders for a plant which limits the usage.
Let me know if you need any more clarifications
And please assign points as a way to say thanks

Production order Settlement to COPA

Hi,
How production order settlement will flow to COPA? Kindly help me by providing the Process flow for this.
I have ticked on settle to settlemtn COPA in settlement profile, and also assigned Pa transfer structure to profile, then system give below error
Enter a PA transfer structure
Message no. KD044
Diagnosis
A PA transfer structure is required for settlement to profitability
analysis.
If any body has any idea then pleas inform me.
Harry

Hi,
Please ensure that following:
1. Create the Settlement Profile. Make sure the settings are correct like valid receivers Segment should be made mandatory.
2. Make sure that the allocation sturcure is created correctly with all the cost elements and value fields
3. Please assign this allocation structure to Settlement Profile
4. in KOT2 assign the settlement profile to Order type
Once this is done, you are through with the settings and you will be able to do the settlement
Best Regards
Surya

Production Order Variance Settlement to COPA

Hi gurus,
Do i have to create the cost element for the settlement of production orders to COPA ?
When i have a negative variance i can settle correct with the cost element created.
When i have a positive variance i can not settle with the cost element created. The system ask to update the PA transfer structure with the cost element.
What do i need to do, create or not the cost element ?
Regards

Hi,
Did you run KKS1/KKS2 before settlement? If you have only execute the settlement, variances will usually not calculated automatically.
regards,
Ronny

Production variance in COPA

Hi All,
We are settling production variances to COPA and We have 3 values fields in COPA,Material Variance,production labor variance and Other variance.
Variance categories are mapped to material, labor variance and others value fields.but i dont see any labor variances in Variance value field.i have reviewed and this is becuase of Variance categories.which are not one to one mapping to value fields.
we have 9 Variance categories mapped to 3 value fields.
client requirement is labor variances to settled to Variance value field,material variance to Material value field and Overhead and other variances to settlement others value field.is this possible?if yes.how can i do this?
Any help is appreciated.
Thanks,
Anusha

Hi,
As explained earlier by other forum colleagues,variances captured at production can be assigned to COPA under value field.This assignment is happening through PA transfer structure for variance settlement.
Normally this can be defined broadly into 2 categories : 1.Cost element and 2.Variance categories.
After looking at your requirement,your main interest is in cost element based production variance push to COPA for reporting.i.e.Labor variance.
Production order shows this variance under secondary cost element labor and difference between target/actual.COPA transfer structure doesn't push 2 seprate values (target/actual) ,whereas only delta gets posted.
I feel your requirement is not possible through PA transfer structure.
I would suggest,you push cost center specific labor expenses under new value field,capture cost component wise break up of standard cost udner different value field.
Comparision of cost center expense and labor part of standard cost will provide you expected value.
I know this complex thing to do,so discuss with client do they really want from COPA?
Same reporting they can get from cost cente i.e.expense posted(labor ) and absorbed on product under secondary cost element.
regards,ashok

Production Variances in COPA CO-PA

Hi Gurus
Production variances are genrated in COPA at the time of Prod Order Settlement.How can we display these in COPA reports apportioned according to Products
If not what is the best practice to present Production Variances in COPA reports

Hi,
The production variances flows to copa by creating PA transfer structre in OKOA. their you have to assign value fields to variance categories.after creation of pa transfer str u have to assign it in u r settlement profile.
Thank u
Srinivas

COPA Configuration for settlement of Production Variances

Hi,
Can anybody explain me detail configuration steps required to settle production variances to COPA in case of Make to Stock Scenario.
Helpful answers will be rewarded with points.
Regards
Milind Nair

Hi
These are broadly the requirements for settling production variances:
1.) The production variances first need to be calculated in CO-PC.
2. Your PA transfer structure must contain assignments of variance categories to COPA value fields.
3. In the settlement profile, you define the variances to be settled and profitability segments should be a valid receiver.
4. The settlement rule to profitability segments is created automatically based on the information available in the production order (product, product group, plant and so on).
5. You must have maintained number ranges for record type "C".
6. The desired form of Profitability Analysis (costing based) must be active in the relevant controlling area.
Hope this is useful
S Jayaram

Production Variances of semifinished goods in COPA

Hi,
We are using Costing based COPA, which is updated at the time of billing.
The production variances are posted to COPA when the settlement of the production orders are done.
The production variances if brought within the purview of COPA report (based on sales), the plan vs actuals can be compared. However, in case of actuals, the production variances would appear only to the extent of tha particular product sold (that too, to the extent of qty produced and not qty sold)..
I have two issues:
1. Whether system can explode the BOM and bring in the production variances of semi-finished goods into the total production variances, if I drill down only on the Finished product sold. The total actual cost would include the variances of relevant SFG also. Is this possible, if so how?
2. Whether, by bringing production qty and sales qty, the proportionate prod variances be calculated (total prod var * sales qty / prod qty). This can surely be done by inserting formulae. But is this justified from business point of view?
Please help me resolving this issue..
Edited by: Swapvik on Mar 17, 2009 7:11 AM

Hi Swapvik,
Issue No.1:
When you are using only Standard Costing in CO-PC, variances will not get rolled-up to the next level. Only costs get rolled-up. As per your requirement, when you see the report in COPA, when you see the details of FG and you want to see the variances of it's SFG also, this would be possible only if you have activated Material Ledger. If ML is active, variances also get rolled-up along with costs.
Issue No.2:
The ultimate purpose of bringing Variances into COPA and making part of them in a report is to consider COGM subject to the variances. Though it is not 100% justified, it gives you the most appropriate analysis compared to where you don't consier the variances at all. If you don't consider variances there, that means, you are considering only COGM and not taking the effect of variances, which will definitely not a correct picture of Profitability.
Pls revert back for further explanation...
Srikanth Munnaluri

Transfering Production variances to COPA

Hi,
I have doubts about transferring Production variances to COPA.
Will this functionality work both for settlement of variances to GL Variances Account and at the same time for settlement of variances to COPA?
From my experience with cost centers and internal orders, I know that if I want to settle an Internal order both to COPA char and to GL Account, I have to make 100% overhead for the costs gathered on IO. Then I can do the settlement in both directions.
Could you please explain to me the case of Production order variances settlement? I need to have them both on GL accounts and in COPA.
Best wishes,
Karol

Hi
At the time of settlement of production orders, FI entry also passed as well as variances are also settled to COPA
In FI, variances will be debited (assuming production order debit is more than what it is settled to Inventory at Std cost) and Inventory changes account is credited.
In COPA, depending on the variance categories like Price, qty and their assignment to value fields, this amount is transferred.
For eg, if prodn order actual costs is say 12000 and is settled to Inventory is 10000 (at std cost), and the difference is 2000 and if this difference is due to Price (800) and qty (1200).
Hope this is useful
S Jayaram

Product Variances in COPA for SFG

Hi Freinds,
I am facing a issue relating to production variances arising from settlement of production order for SFG.
As SFG is not sold in my case and is being used for producing 2-3 types of Finished goods, therefore client wants that the production variance of SFG should be allocated to the FG's based on Sales Quantity.
However as all production variances are being settled to COPA, SFG production variannce are also coming to COPA, now I am not able to fine in COPA if there is anything to support this.
Thanks

Hi
The answer to your question is both YES & NO
It is possible to allocate SFG variances upon FG using top down distribution in COPA (KE28)... However, for that, you should have "Some thing in Common"
"Some thing in Common" means - Your SFG and FG should have a relation in SAP where by you can identify that they co-relate.. In one of our clients, we set up the system in such a way that the related SFG and FG shared the same material group...
So, while distributing in COPA (Top Down Dist), we specified that Variances Pertaining to Mat Type = HALB & Mat Group= XX should be allocated to Mat Type = FERT and Mat Group = XX...
Do you such a co-relation established in your system?
Regards
Ajay M

Cost elements set in KEI1 A1 Settle Production Variances?

Dear Experts,
What kinds of cost elements would be set in KEI1 If the PA transfer str. is A1Settle Production Variances?
10     Input price variance
20     Input quantity variance
30     Resource-usage variance
40     Remaining input variance
50     Mixed-price variance
60     Output price variance
70     Lot size-/fixed-cost variance
80     Remaining variance
90     Scrap
Could i say "cost elements that we can see when we do KKS1 variance caluation?
Or else?
Thanks in advance.

Hello,
You NEVER assign cost elements to value fields for mapping the settlement in COPA. Instead of that what you do is in the source tab for the line (eg 10 Scrap) select the radio button called ' varainces on production orders' and input the appropriate variance category eg. eg SCRP. In value field tab you would assign the appropriate value field. There is no need to assign cost elements. When you execute variance calculation the information is captured in the following fields and the same flow to COPA when you assign the variance category to value fields.
PRIV      Input Price Variance
QTYV     Input Quantity Variance
RSUV     Resource-Usage Variance
INPV             Remaining Input Variance
MXPV     Mixed-Price Variance
OPPV     Output Price Variance
LSFV     Lot Size Variance/Fixed-Cost Variance
REMV     Remaining Variance
SCRP     Scrap
The variance calculation is not just a simple difference between the cost elements it is also related to quantity as well.
Kind Regards // Shaubhik

Production Variance settlement to COPA

Similar Messages

Maybe you are looking for