Settlement of Material
Hi All,
Should material used in PM orders settle to a Primary or secondary cost element?
I had a disagreement with the MM consultants and want to know what is the right way of doing this.
Thanks
Hi,
I think you are talking about settlement of the actual cost incurred when you consume a material using a PM order.
Generally PM orders are settle to the receiver as cost center , which is the CO process. However you can settle to G/L a/c, WBS , Orders etc. So when a cost element carries cost with in CO is secondary cost element and when a cost element carries cost between FI and CO are primary cost element.
Hope I think It may be helpful to you.
Regards
DP
Similar Messages
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Dear Friends,
We have the requirement Order settlement to Material. We have check in Allocatioan structure, I could not find material object.
Please help me.
Regards
SreeHi,
Please check the following
Which order type you are using and which settlement profile is assigned to it. To check it, please use KOAL T Code. Now double click on Order Type and check which Settlement profile is assigned? Now to check that settlement profile go through the following path
IMG > Controlling > Internal Orders > Actual Postings > Settlement > Maintain Settlement Profiles
Click on Settlement Profile. Now check that settlement profile which is assigned to that order type.
Now check the Default Object Type. it must be MAT and also check Valid Receivers.
I hope you will to come how MAT comes from.
Regards,
Jigar -
Settlement of material on Project
Hi
How WBS settle on material ? as per my knowledge material can not settle on project WBS or network order and it only settle on production order. Is it right way to settle material on project or it is not possible. when I maintain settlement rule receiver as material system throw error message material receiver only in production order as in prerequisite settlement profile I maintain material as receiver. can any one focus on above issue.
RegardsHi Pramila
Thats correct... Material as settlement receiver is only possible for Prod Order.. You can not settle WBS on a material...
You can create a prod order in relation to WBS.. All costs posted on production order... Later on when you settle the prod order, it gets settled onto material and the stock from production order gets assigned against the WBS element
Thats the way it works....
Regards
Ajay M -
Variance is settling to Material
Hi All
This is a MTO Scenario where the difference between target cost and actual cost is settling on the material.
Actual cost is less than the target cost - this variance is settling on the material and thus there is an increase in cost.
Say For Eg. Target cost is Rs 50, Actual cost is Rs 30 (raw materialactivity cost). The variance of Rs 20 is again settling on material and the material is showing actual price as Rs 50 (Raw materialactivity cost+variance)
Actual price should be 30 and not 50.
Rs. 20 is getting posted to FI too as price gain variance.
The settlement rule is - settle 100% to Material.
Is this standard SAP ? Does variance gets settled to Material ? shouldnt it be settled to cost center ?
Material has V (Moving Average Price) Indicator.
COPA Is not activated.
Edited by: Khyati Patel on Nov 8, 2011 4:55 PM
Edited by: Khyati Patel on Nov 9, 2011 7:32 AM
Edited by: Khyati Patel on Nov 9, 2011 7:33 AMHi Kyathi,
If the M2O production/process order is for non valuated sales order stock, settlement receiver is SDI (Sales order). if COPA is active, in Sales order, settlement receiver is Profitability segment.
If the M2O is for valuated sales order stock, my understaing is settlement receiver is MAT (material) only. if COPA is active, settlement receiver can also be Profitability segment in addition to MAT. My understanding is that Production order varinaces will not go to Sales Order in this case.
Let m eknow if you need any further details.
Thanks & Regards,
ADI -
Hi ,
I have Production Order for 1 FG which is having 10 SFG in assembly line and the Production is based on MTS .
During line assembling there was some material consumed against Rework . When settling Production order
the variance is settled in Variance a/c ( GL a/c ) . I dont want to settle this to G/L But want to settle to Material
ie COGS .
example : Production order Qty 10
Cost of FG --- 10 Rs each ( standard cost ) + overheads ( x )
variance Rs 20/-
total Production cost Rs 120 + x
The variance should settle to material ie COGS ie Rs 10 + x / 10 + 2
how to do in SAP ?
Regards,
Jayaclosing
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Rebate settlement with material insted of amount
hi sd gurus
my client requirement is he want settlle rebate with material(instead of amount) how can we settleHi,
001 Customer/material BO01
% rebate)
Customer/rebate group BO01
(% rebate)
002 Customer/material BO02
(Quantity Dependent)
Along with the rebate agreements mentioned here also please check this on how to settle rebates based on customer, material ( your requriement) in the following link.
<a href="http://help.sap.com/saphelp_47x200/helpdata/en/4a/ac853478616434e10000009b38f83b/frameset.htm">Rebate settlements</a>
Hope it helps. Please reward if useful.
Thanks & Regards
Sadhu Kishore -
Refurbishment settlement to material
Hi Experts,
I have done a Refurbishment process cycle for a material with condition based valuation type(DEF type to REP type) and I have done TECO.
Stock quantity is getting updated when I do GR (IW8W). But the Moving average price remains the same to all material in that valuation type(REP).
I want to settle the order cost (labor + components) to same material and get the moving average price to be adjusted.
Please advice me to correct this issue.
Thanks in advance,
Babu.KHi
Refurbishment will not happen from MM. It happens via asset management. Service/material purchase orders should be created with reference to concern asset with account assignment category A.
Regards
Antony -
Settlement for Material that has Co-Product
Hi people,
I have a main material that has 3 co-products.
In the transaction: COR2 in settlement rule, we have put the % for each product (for the main product and his co-products).
When I execute the transaction CO8B to (preliminary settlement for co-procuts) the system run ok, but until this time, nothing was to the inventory.
So I thought that when we executed the transaction KO88, the amount will go to the inventory in the main produtc, but it didn´t happened.
Maybe i did some thing wrong.
Could you help me how I can make the settlement to show the value in the main material?
Thanks.Hi,
Check the Apportionment structure in the Main material master, I think you should have given Equivalence number for the main and all the 3 co products.
Same ratios will be taken up in the Process order too. you are not required to give %.
Just check whether this is in place.
CO8B is the transaction code to divide the cost on the Process order in the ratio mentioned to all the Products. But this will not flow the cost to the Inventory.
Once you do the above transaction, then the cost on the Process order is divided among the Main and Co products.
Then you execute KO88, it only settles either the WIP or the variance on the order to FI. But Inventory is increased when you do GR
Hope this helps.
Thanks & Regards,
Ravi -
Settlement to Material Based on Grade
Hi guys,
Our client has the following requirement:
Suppose that they have 2 material code: X and Y, both are the same material, but are separated based on grade (quality).
Both use the same BOM and routing. Initially, when creating production order, material X will be created.
Now, their requirement is that they want the FOH to be allocated only for material X (first grade material), and the material Y will not get any FOH.
How can we achieve this in controlling?
I am thinking of utilizing source structure for this, but to my knowledge it is only available in CRM.
Please kindly suggest
Thank you very much in advance
BR, ErwinHi,
That is interesting, but that means that we have to create a material number for Y.
Actually, when we approach the by product concept, i am thinking of using the fixed by-product cost feature.
Variance and cost wise, i think this fixed by product cost feature is good enough, but i think that it will still need further testing.
However, i still am not sure about the impact of by product to material ledger since material ledger with price determination 3 is active in our client.
Thank you for your response
Best Regards,
Erwin -
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 PadartiHi 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 -
Settlement of WBS into Material
Dears,
How to WBS settle in Material i.e. Finished Goods and when I execute transaction CJ88, processing category gives status no change in stead of Settlement Executed.
Please give reply
Regards
KalpikHi,
Please check the following details for settlement of project for recevier i.e. Materials in your case.
1. Configuration of Settlement for the project with necesary settings
2. Allocation structure need to be configured properly with assignment of all cost elements
3. Settlement rule to be maintained for the WBSE / Project defition with valid receiver of the cost from WBSE.
4. Cost should be incurred in the sender WBSE
Hope this will help you.
Regards,
Rakesh Pradhan -
SES Cost not settling on REFURB Material in Refurbishment Process.
Hi Experts
I carried out a Refurbishment Process with Valuation Types. On the last part when i do a SES the cost of the SES is not settling to material wich has a valuation type REFURB.
For the above one i created a material code with 3 valuation type as New / Defect / Refurb. The cost of Defect was set to 0 and cost of REFURB was also set to 0. Should i do any changes while creating the REFURB Valuation type.
Can any one help me out....
Regards
Venkat.hi
where the cost is settling to. whether any actual cost is there
also refer the following link
Doubt related to Refurbishment process
also refer http://www.scribd.com/doc/49382166/X72-Scen-Overview-EN-AU-Rotables-Management
regards
thyagarajan
Edited by: thyagarajan krishnamurthy on Jul 18, 2011 1:05 PM -
Configuration material for settlement in Product Costing
Dear Friends.
We are not going to configure CO-PA here.
But we have to give financial effects for variance that are occuring in production order.
Please suggest any suitable configuration material for settlement in Controlling.
thanks
Ranjeet<b><a href="http://help.sap.com/erp2005_ehp_02/helpdata/en/90/ba614b446711d189420000e829fbbd/frameset.htm">Click here for Variance and Settlement Documentation!</a></b>
You can settle to material if you are not using COPA! -
Refurbish work order get settled before this refurbished material returned
Hello guy, can somebody help to analyze the problem I have in our production system.
the problem is that I found a strange thing that one of the refurbishment work order get settlem and the refurbished material is not yet returned back to stock.
And I check the cost report of this work order, and found this cost receiver is material, which means this cost is already posted against material.
I have no idea why this can be settled?
However it is impossible to settle refurbishment work order before refurbished material returning back to stock in my opinion.
Can any one help me, many thanks in advance.Hi,
The refurbishment order can be settled to material when if it is in System status
DLV- delivered, after GR has been done or
TECO - If the order status is Technically completed
So in your case the order status may be in Teco status so that the cost is settled to Material before u do GR.
So check the System status of the maintenance order.
Reverse the settlement & do GR & settle again to material.
Regards,
Raj -
Settlement of Sale Order issue.
Dear friends
I am getting the following error while settling the Sale Order in VA88.
Please guide me in this issue, how to handle?
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 settlementNow I am getting another error.
Complete PA transfer structure ZR
Message no. KD514
Diagnosis
There is no value field assignment for cost element 911400 / *_variance category COSR_* in PA transfer structure ZR, or
PA transfer structure ZR has no assignments, or
No "Origin" is maintained for the assignments in PA transfer structure ZR (cost element group and, if applicable, variance category)
When I see the Variance Category I didnt find any Variance Category COSR?
What could be the reason.
Thanks in advance
Kiran
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