PS Settlement and variance

Dear all,
Is it possible to do WIP and variance in PS..I did with CJ44 and CJ88 its working, but i need more clear for WIP and variance.......and FI-CO account entries.
Pls provide T-code..
I need steps like PP..
Overhead calculation KGI2
WIP                         KKAX
Variance                  KKS2
settlement                KO88.
Regards,
S.Suresh.

As ahmed told I believe that There is not T code for the variance in PS.
Regards
Nitin P.

Similar Messages

Order Settlement and variance booking

I require one clarification.
Here one production order was created with a big quantity few months ago and the same has been completed and finished in this month. Because of this the total variance which is very huge has been posted in this month in the Price Difference Account. Because of this the profit fot the period has come down very much.
It seems that the above process had no errors. I hope we cannot settle the variance in each month so that the variance will be posted in each month. I think variance will be posted once the entire order is finished and settled, right ? In that case to avoid this kind of situation, instead of one single order, can be create multiple orders with lesser quantity and settle it so that we need not wait for these number of months and settle the variance altogether in the period when the order is settled ?
One more clarification. For the already settled order, can we split the order into multiple orders again and do the above process ?

Hi Niki
It seems you are in DISCRETE scenario i.e. Settlement type is FUL
With FUL - Variance calculation is dependant on Order status... ONly DLV & TECO status goes for variance calculation....
With PER (Periodic scenario using PCC) - Variance calculation is not dependant on Order Status... You can calculate variance each month
a. You can change the settlement type from FUL to PER in your Order Type.. Thats one solution... However, WIP will be calculated @ Target cost instead of actual cost
b. You can also create orders for smaller qty and retain the settlement type FUL
c. Explore with your PP guy if you can use Prod Cost Collector i.e. repetitive scenario instead of Discrete....
d. For the already posted order - You cant split it now.. Its better you forget it now...
br, Ajay M

Production order and Variance

Hi,
I need some clarifictions on production order settlement and variance.
Our PP consultant created one PO.Before release of PO they took standard cost estimate it is showing 9000. In this stnadard cost estimate we are calculating the scrap credit also and scrap credit 1000 and we are mainting for cost center also for scrap credit.
while doing of production of settlement we saw that actual amount is 11000.
As per my knowledge When the production order settlement scrap debit also should settle to scrap cost center. Then our scrap cost center will be 0. But everything is settle except scrap and it is not giving any error also. My doubt is whether scrap is settled or does it was clubbed to any other receiver.
One more question. Why we have to settle the order and why we have to run the variance for order. Does it provides any advantage to the management.
Please guide me deeply.
It is very urgent for me.
Thanks in advance

Hi Sateesh
please check the distribution rule for settlement, you may have put 100 (Full) settlemnt for 1st Receiver type say Material
Enev if yo maintained two receiver type in order then also if the first one is Full settlement then system will not able take the second receiver type
I think it is going to your 1st receiver type
Thanks
Ansuman

Allocating Standard and Variances of Production Costs into CO-PA

Hi Experts,
I would like to ask you about the process of allocating eg. humal labour into CO-PA.
Lets have an example:
We have planned to spend 10 hours on some action. But actually we have spent 20 hours.
When we allocate our time from some PC, we have to allocate actuals, that means 20 hours, which will come into CO-PA online.
At the end of the period we run Production Order Settlement and find the variance.
What will now happen do distinquish between the planned costs and variances?
Thanks in advance for your answers!
Kindly Regards,
Radek

Hi,
I am not really sure about your question
We have planned to spend 10 hours on some action. But actually we have spent 20 hours.
When we allocate our time from some PC, we have to allocate actuals, that means 20 hours, which will come into CO-PA online.
At the end of the period we run Production Order Settlement and find the variance
The 20 hours will only flow to Production order and not to COPA online.
Whatever the difference between the planned actual vlaues in the cost centers, they will come a cost center variance report. It does not effect any where else.
But if there are any balances left out (difference between the total cost collect to the cost centers and the cost obsorbed to production orders etc), this values need to be assessed to COPA using COPA Assessment cycles
I hope i touched your question.
Please do let me know if your question is different. If it is different, please rephrase your question
best regards
Surya

Settling production variances when the price control of the material is "V

Hi,
Scenario: 1) Materials are maintained at moving average price.
                2) Production variances need to settle to material and MAP need to be adjusted.
Issue: When the closing stock of the material is less than the negative variance need to be settled from the production order   the system is giving the message "Moving average price for material is negative"
Questions: 1) What is the solution for settlement of negative variance to material when there is no stock?
                   2) Is there is any way to settle these variances to price difference account only when the stock is not available. if stock is available the variance has to adjust the stock, if not settle to the price difference account. Is there anys standard settling for this?
Advance thanks for your help
Regards
Koteswararao Padarti

Hi Rao
You should never have Price Control V for In House made material...
That will ruin your inventory valuation forever.. Consider the eg below if your price control is V
1. Your moving price in mat master is 100 USD
2. You Mfr on Jan 1 @ Actual cost = 110 in Prod order and Qty = 1.
Upon GR, GR will happen @ 100 and at period end if Qty is lying in stock, 10 variance will also be inventorized
BUT, now consider this
1. 1. Your moving price in mat master is 100 USD
2. You Mfr on Jan 1 @ Actual cost = 110 in Prod order and Qty = 1.
Upon GR, GR will happen @ 100 and variance lying is 10 in prod order
3. You Mfr on Jan 10 @ Actual cost = 110 in Prod order and Qty = 1.
Upon GR, GR will happen @ 100 and variance lying is 10 in prod order
4. On jan 15, you consume Qty 1 and qty lying in stock is 1
5. In period end, when you do settlement, following will happen
a. For prod order 1: Qty Mfd 1 and Qty lying in stock 1 - Result: variance 10 will be inventorized.
Mvg Avg price will shoot upto 110
b. For prod order 2: Qty Mfd 1 and Qty lying in stock 1 - Result: variance 10 will be inventorized.
Mvg Avg price (MAP) will shoot upto 120
System wont check whether the qty lying in stock pertains to prod order 1 or 2... It will simply check if the Qty of prod order matches with qty lying in stock. hence, it will keep on inventorizing variance in this case.... and your MAP will touch the sky
Regards
Ajay M

Additive Cost and Variance Calcultion

We started using Tcode CK74N to enter additive costs for certian materials. I did the configuration needed in the costing variant and added a cost element for additive costs in the cost component structure.
Everything is working fine, when we run CK11n for a material that already have an additive cost estimate, the additive costs are being picked up and included in the cost estimate. if we mark and release the cost estimate the additive costs are being reflected in the new standard, so far so good.
My question is around the variance postings that happen once we enter a production order and settle the variance at period end.
lets look at this example
Assume the following:
Material X current standard = $100
Order X quantity produced =10 cases
Material X NEW standard after negative additive cost =$80
Scenario 1 (no additive costs) the total debits (Actual postings form material consumption and activity confirmation) to a the order = $900
The total credit was $1000 (standard*quantity produced) , a $100 in variance will occur, and the posting at settlement will be to Debit the price difference account and to credit the cost of sales account for $100. This is the normal case
Scenario 2 : We included a -$200 of additive costs for that material in the standard (new Standard is 80) , the credit to the order will be $800 instead of $1000 , which will make the variance -$200 and the posting currently is to DR cost of sales and credit price difference account for $200
The business and Based on scenario 2 wants to automatically generate a posting to the ACTUAL side of the production order equivalent to the additional variance caused by additive costs? which will put the variance back at 100.
They would like to see a credit to the cost element used in the cost component structure to book additive costs. and the reminder of the variance 100 in our example should continue to be booked to the same price different account .
If this is possible and right to do? what account should be used to offset this credit that being proposed to the additive cost element ? Because I assume that a new FI document should be created to record the credit?
Thanks for your help

Hey,
It depends a little upon the settlement rule of your process/production order.
If you are settling to the material (MAT), the price difference will only be accounted for with one line, without separation between difference coming from additive costs and other differences.
If you are settling not via within CO, you maybe have the possibility the way you settle, but I can not see how you can use such a logic in a settlement process.
What I would do, is to create a custom reposting program, which reposts the additive cost difference separately, after which the normal settlement can take care of the remaining difference.
Regards,
Koen

Varaince settlement and costing sheet in REM and Production order

for REM, repetetive manufacturing, what's the difference between REM and production order in terms of variance settlement and settlement profile design? what's the difference between process order and production order in terms of variance settlement and settlement profile design?
for actual overhead(fixed and variable), can it be calculated automatically by costing sheet? user is very angry to input actual overhead by jounal entry. also how about plan scrap, how to define it in configuration? besides order confirmation, where can I input actual scrap?

For variances, there is no difference between the 3 diferrent orders. The settlement profile can also be the same. The real difference from a CO perspective concerns the calculation of WIP and the settlement rule. Process orders and production orders normally use a full settlement rule (though periodic settlement is also possible) and WIP is calculated based on actual cost. Repetitive orders only use periodic settlement and WIP is valued at target cost.
From an overhead perspective, there is no difference between the 3 types of orders. Overhead sheets are assigned through the costing variant and costs are applied through period-end process.
Plan scrap is maintained in master data, either in material master, routing (receipe for process orders), or bill of material. Acttual scrap usually happens based on the quantity of components issued to the order during confirmation or by the amount of scrap reported during confirmation. If you are backflushing components, as you normally would do for repetitive, then you can adjusted the consumed quantities by doing an additional goods issue to the order (movement type 261).
thanks,

Error when settling the variances to PA by categories in make to order

I want to settle a production order (Make to order-configurable material) to PA, because It's necessary for us to settle the variances by categories to PA (The PA Transfer structure is customized with the source "Variances on production orders" filling the Variance categories, and the settlement profile settings with the flag "Variances to Costing-Based PA).
The system generates in the production order the distribution rule to material on the settlement rule. This way the settlement doesnu2019t create a PA document, only FI document y CO document where the variances go to the material (the material valuation is V).
If I create, manually, an additional distribution rule to profitability segment on the settlement rule, when I settle the order (KO88) appears the error u201Cmessage no. KD514 - Complete PA transfer structureu201D, but the structure is right.

Hi,
I want to settle a prodution order ("make to order") which has a distribution rule by default to material (material is valuated as moving average price). Also, I have customized the settlement profile with the flag "Variances to Costing-Based PA". The PA transfer structure is setting by variance categories.
However, when I run the settlement only the FI and CO documents are created, but not a PA document. This is the error to solve.
To solve this, I create a manually, an additional distribution rule to profitability segment on the settlement rule, but when I settle the order (KO88) appears the error u201Cmessage no. KD514 - Complete PA transfer structureu201D, but the structure is right by variance categories.
I think that the settlement must go to PA by variance without create this manually distribution rule
Greetings.

REM - Cost Collector Settlement and transfer order price

Hi,
My client is using REM. They create planned orders in their distribution centre and through special procurement manufacture the orders in a seperate manufacturing site. There is no stock transport orders the goods are manufactured in the production facility and recieved into stock in the distribution centre during backflushing.
The cost collector is set up for the planning site so that once the planned orders are settled the moving average price of the finished product is updated in the distribution centre.
My client wishes to add a 'transfer price' at order settlement so that the moving average price in the distribution centre is updated with the new moving average price + the transfer price during settlement.
Is this possible using transfer pricing functionality??? How is it implemented?
R'ds
Nick

Hi,
If this indicator is turned on, the costs are collected on a product cost collector. In this case you use the functionality of Product Cost by Period. In this case you calculate the work in process and variances by period
If this indicator is not turned on, the costs are collected directly on the manufacturing order. In this case you use the functionality of Product Cost by Order.In this case you calculate the work in process and variances by lot.
Cost Collector will be used in conjunction with the distribution rule - PP2 periodic settlement.
In discrete , if you split the order you have to use the cost collector indicator and the PP2 periodic settlement rule.
Regards,
Sheik

Settle prod variance to diff GL account

Hi,is it possible to settle prod variance in the same prod order to different GL account?
for example.i got prod variance 100 in one prod order,i like to settle it do diff GL in FI, i.e material variance account and labor variance account

Hi Liu
You can not do that... You can settle Variance to a GL account specified in OBYC - PRD-PRF...
This GL is specified at valuation class level.. So, for one material you can settle only to one GL account
Regards
Ajay M

Colective Settlement and "CLSD"Status for Production and Maintenance Orders

Hi dear experts,
Is that possible to use transaction KO8G for collective settlement of Production Orders? Apparently it only works for Maintenance Orders.
The same applies for transaction CO99 for getting "Closed" status in Orders. Apparently it does not take the Production Orders, even if the selection "With CO Production Orders" is active. Is there any additional configuration we should do?!
We would like to do settlement (and mass set "Close" status after) for Production and Maintenance Orders at the same time.
Thanks in advance,
Lígia Moreira

Hi,
You can use CO88 for settlement of production orders. Normally, CO99 should take production orders if the flag is switched. Do you receive any error when you do it?
Regards,
Eli

Actual Costs , Planned Costs and Variance

Hi,
I know that there is a standard function module that gives the actual costs , tha target costs and variance, K_KKB_KKBCS_ORDER_REPORT. But is there any Funcion Module for calculating the Actual and planned costs and variance? or could the same FM be used for the purpose?

OK

Delete Expense Reports after Settlement and Transferred to FI

Hi Gurus
Please let me know how to delete the Expense Reports which are in status "Trip Approved" and "Transferred to FI" ?
We have created many Expense Reports in the copy of Production for testing various scenarios. When we execute the Payroll Run, we do not want all the unwanted Expense Reports (which are Settled and Transferred to FI) to be picked up in the Payroll Run. In a way, we want to clean up the unwanted Expense Reports, although they have been posted to FI.
Also, please let me know the following :
In Production, under what conditions, we can/should delete the EXpense Reports which have the status of "Trip Approved" and "Transferred to FI" ?
I know that we can use T.Code : PRRL (Reset the Accounting Status), but kindly explain what exactly this T.Code does.
Thanks in advance.
RRoy

Hi,
As described in previous post, following link may be helpful for you..
http://help.sap.com/saphelp_erp60_sp/helpdata/en/b6/cd9f2449e911d189060000e8322f96/content.htm
Regards,
Muhammad Umer
Edited by: Muhammad Umer on Jul 27, 2011 10:54 AM

Percentage rate settlement and amount settlement

What is the difference between percentage rate settlement and amount settlement and how does this impact settling orders?

Order cost will be settled to some settlement receivers.
1. If you maintain Percentage, based on the percentage entry, cost will be distributed among different receivers.
2. If you maintain Amount, directly amount can be entered & will be settled.
For example, order cost is 1000 & settlement receivers are 4 different cost centers. We have cost center as CC1, CC2, CC3 & CC4.
Settlement % for each cost center as follows:
CC1 -> 20%
CC2 -> 10%
CC3 -> 35%
CC4 -> 35%
Then cost will be calculated accordingly, settlement will happen.
Also you can enter amount against each cost center.

What is source to settle and source to pay?

Hi dudes
What is source to settle and source to pay.Please let me know process flow if possible.
Regards
Chinna Krishna

HI,
Source to pay is basically automat and synchronize your procurement and payment process.
Source to pay system like SRM provides strategic value through sustainable cost savings, contract compliance, and quick time-to-value. Companies are equipped with tools to drive superior results through an end-to-end source-to-pay process. Activities such as spend analysis, category management, requisitioning, sourcing, operational contracts, invoicing, and supplier management are part of an integrated platform.
this can connect you to your entire supply base-allowing multiple levels of suppliers, partners, and manufacturers to work together, while you reduce the cost of goods sold throughout the company.
this process integrates supplier qualification, negotiation, and contract management more tightly and cost-effectively with other enterprise functions and their suppliersu2019 processes u2013 through a single framework with support for multichannel suppliers.
So in NutShell you can say that this basically reduce the cost and time of the procurement process.
which basically reduce the workload of the purchasing and finance department.
Regards,
Sachin

PS Settlement and variance

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