Variance Calculation and Settlement

Hello Gurus,
While performing period end closing, the variance calculated (KKS6) amount is not the same as the amount in settlement (KK87). Both are picking up the same variance categories for the material but with different values. can you please let me know the reason for this.
Note: This error occurs only for one company code, other company codes calculate and settle the same amount. WIP and scrap is not being used by the company codes.
Thanks in advance.

Hi Friend,
did you check whehter all your allocation and distribution cycles related to that company code are executed.
in my opinion you need to check if that is executed and again compare the both reports
Best Regards,

Similar Messages

  • List of orders for which varience calculated and settled

    Dear Friends,
            How to list out the production orders for which variance calculated and settled by each period wise,Please give me a solution.

    Hi,
    U can find some status of order in COOIS T code or in Order it self.
    Go to COOIS
    Select the option in status field.
    SETT - Order Settled,
    SETC - Settlement Rule Created
    SETM - Settlement rule created manually.
    TECO - Techo  (Once order is Completed).
    without techo order is not settled.
    Regards,
    Pavan PP

  • 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
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    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

  • Production variances calculation when using assessment to PP orders

    Hi,
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    I activated business transactiun RKIU for PP orders object.
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    However, I have some problem of other nature.
    When I do the standard price calculation - the Overhead costs from Production Departament CC are calculated as % overhead using costing sheet. It is done by cost element with cost element ctg 41.
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    It's looks like you are right. I've made production version for configured material and production order created. Thanks.
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  • Production order WIP and Settlement

    Hi All,
    We have some production order WIP calculation and settlement issue or May be Iu2019m not understating WIP calculation and settlement process.
    I will explain my issue with an example.
    We have one production order with qty 100 and Material consumption and labor is posted as follow.
    Material USD100
    Labor USD50
    Before period close, we have received qty20 into inventory (GR) and USD300 posted to Inventory.
    At period end when I run WIP calculation (KKAX), system is showing in "USD150-" into u201CType of WIP data Reserve for Unrealized costsu201D and this is not settling to FI and PCA.
    Is this correct? Or am I missing any configuration? Please explain me.
    Any help is appreciated.....
    Thanks,
    Anusha

    Hi,
    Thanks for your reply.
    In OKGA-->update of WIP Calculation and Result Analysis transaction,we have assigned secondary cost elements(931XXXXX) to Controlling area, Version,RA key and Line Id to "K" and here we have WIP and Reserves.
    In OKG8-->Define Posting Rules for Settling Work in Process,we have assigned only WIP secondary cost element from OKGA to P&L and Balance sheet accounts to "WIPR" RA category.
    Do i need to assign "RESERVE" secondary cost element from OKGA to "WIPR" RA category in OKG8?
    Any help is appreciated.
    Thanks,
    Anusha.

  • 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.
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    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).
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    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
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    Ajay M

  • Accounting entry - WIP, Variance Calculation & Settlement of Production Orders

    Hi All,
    Please explain the process of WIP calculation, variance and settlement of production orders. At each stage will there be an accounting entry generated?
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    2. Variance calculation: Production order needs to have the status TECHO in order to do the variance settlement. Will there be an accounting action and how the amount will be calculated?
    3. Settlement of Production Orders: Dr. WIP A/c (Balance Sheet a/c)
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    Regards

    Dear Andy
    In product cost by order scenario the WIP or Variance calculation is dependent on order status. If the Order has a status of REL or PDLV, the system will calculate WIP and if the order status is DLV or TECO the system will calculate variance on this order. At the time of calculation of WIP or Variance no accounting entry i generated but when you settle the order at that time FI documents are passed in the books.
    Ans1-  In product cost by order WIP or variance is calculated based on the actual cost debited to the order and value of GR made to the order. System does calculation by the formula GR value-(GI value+Activity value+ Overheads)
    Ans2-  As I said at the time of calculation no FI entries are passed but at the time of settlement FI entries are generated. The method of calculation is the same as described in Ans1.
    Ans3- Entry at WIP settlement WIP (P&L) a/c Dr and WIP Offsetting(B/S a/c) Cr.
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              and if there is already a WIP posted for this order then at settlement WIP entry is reversed provided we have calculated WIP again the the month of settlement of variance
    Note for Anand: Dear Anand we need to calculate WIP again in the period when the order status  is changed to DLV or TECO otherwise system will not pass reversal entry of WIP. Kindly test it in your IDES and let me know if you find something on the contrary.
    Regards
    Rajneesh Saxena

  • Want to suppress messages 011 and 013 from variance calculation run

    Hi Gurus,
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    KV 011     Order does not have status DLV or TECO
    BS 013     System status & is active(&)
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    Thanks & Regards
    Vinu

    HI,
    check T-codes OPR4_KKS and OPR4_KKS1 if the messages appear (I guess they do) and are changeable, if yes change it.
    Best regards, Christian

  • Actual cost  is not  seen in the  variance calculation KKS2

    Hi
    I   did  variance calculation of  a Production order  ( after  telco)  .  Its a co - product.   The  target cost , actual cost and  allocated cost   fields are present  after  execution.   Now  the  actual cost  field is   blank  and  so   the  variance is not  correct.
    Pl  advise on  why  the  actual cost field is not  populated with  the cost.
    Thanks
    kamala

    Hi
    KOB1  shows the actual cost .  I do  TECO  for the PO and  calculate  Variance for co-product material,  and  the  actual cost is showing at  zero.  But   then i  do  settlement  KO88,  and  the   variance amount  gets posted CORRECTLY and FI document is generated.
    So  why is the  ACTUAL COST  field   ' ZERO'    in  KKS2,  but    KO88   settlement  shows the  variance amount.
    It  there some different logic  to  do variance calculation  for   PO   involving  main product  which have  co-products  in it.
    Thanks for  any inputs
    kamala

  • Process order variance calculation not taking the GI+Activity confirmation Cost

    Hi,
    Process oder was settled in the Month of June,2014. Accounting document was generated,but system only considered the GR cost. System was not considered  the GI as well as activity cost on variance calculation. Variance posted GR= Variance.
    22nd June,2014 Variance calculated, on 30th WIP entery also reversed with the same amount.
    1st July,Order done untecho and no transactions are posted in the Month of July.
    Now they would like to settle the Process in the Month of July. system is throwing the error " Status DLV/TECHO reversed after settlement period 006.2014"
    Order status was TECO PRT  CNF  PRC  CSER BASC BCRQ CRF No variance calculation status.
    Any one faced any similar issue , please suggest me how to proceed.

    Hi,
    Please check SAP Note 386816 for error KV181.
    In general it is recommended to use the Cost estimate of the Process Order (Planned Cost Estimate) for the WIP at target calculation. In additional please pay attention to SAP Note 386816 which explains this procedure and which prerequisites must be met to calculate WIP at targets or the scrap variance. Even if the group counter of the routing is different you can still calculate WIP at targets but only if the message type of message KV181 is set to SPACE by Customizing settings.
    Hope this will a bit help to you.
    Best regards, Takashi

  • Avoid variance calculation on product order

    Hi experts,
    i have a question. We have a material with cost estimate with quantity structure, cost estimate is release. All cost components in cost component structure are in inventory valuation. On the product order are then target costs. When material is producing, one component of BOM (cost element XXX) is not consumption on product order. When i start variance calculation, SAP calculate variance to this one component (cost element XXX) and by settlemnet of order, posting variance to FI. But this thing i don´t want. It is possible prohibit calculation of variance for this component of BOM - cost element XXX on product order? It is possible prohibit settlement this variance to FI? What i can do for it?
    Thanks a lot,
    Gustavo

    Hi,
    i must settlement product order, so i need variance calculation. So can i settlement variances to FI only for some components of BOM and one variances of one component leave on procuct order? Or can i settlement variances of one component of BOM to other cost centrum than others components (alternatively under other cost elements)? Maybe substition.... If yes, how?
    Thanks a lot,
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  • User exit to break up variances during order settlement(CO88 )

    Hi
    As per the standard SAP process during C088(process order settlement)
    the entire variance is settled to once single variance account. But we
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    accounts(eg.RM cost, Conversion cost, etc resply) as a part of the C088
    settlement. Can you please help us understand how can this be achieved.
    Also is there any user exit which we can utilise to achieve this.
    Hope you could understand our requirement.
    Regards
    Ganesan
    Mobile#9885567427

    Detail variance reporting is possible via 'variance calculation'. SAP calculates different type of variances on input & output and it can be posted to different value fields in COPA for analysis.
    http://help.sap.com/saphelp_erp2005vp/helpdata/en/90/ba81d2446711d189420000e829fbbd/frameset.htm
    Ideally, a single GL account is sufficient for variance posting and COPA is used for detail analysis. If it is absolutely necessary to post to different FI accounts, post variances to COPA. Develop an ABAP program to read the data from COPA value fields and create a batch input or call transaction for FI postings and reverse the original variance posting, periodically. (though it is not a very good idea from long term perspective!!)
    Regards,

  • KSS1 - Variance calculation on cost centers

    Hello,
    i ran KSS1 but the variance calculated is the difference between actual and planned amounts (in my scenario planned = target).
    Actually, i'd like to calculate and book the variance between costs booked on cost centers and absorptions coming from labour hours. At the end the aim is post somewhere the over/under absorption of production cost centers.
    Any suggestion?
    Thanks,
    Reagrds
    Enrico

    Hi,
    i must settlement product order, so i need variance calculation. So can i settlement variances to FI only for some components of BOM and one variances of one component leave on procuct order? Or can i settlement variances of one component of BOM to other cost centrum than others components (alternatively under other cost elements)? Maybe substition.... If yes, how?
    Thanks a lot,
    Gustavo

  • Product Variance Calculation

    Gurus,
    How do we calculate Product variance?
    What is the procedure / process?
    Where can the effect be seen?
    Edited by: Bhatia on Oct 15, 2008 6:44 PM

    Hi,
    Variance Calculation
    As long the production order is not fully delivered or flagged Technical Complete the remaining order balance is treated as WIP. Otherwise the order balance shows up in variance calculation.
    If a lot-based product-controlling WIP, is valuated at actual costs. The WIP is calculated as the difference between the debit and credit of an order as long as the order does not have the status DLV (delivered).
    In lot-based product controlling the variances are not calculated until the order has the status DLV (finally delivered) or TECO (technically completed). This means that at the time the order has reached this status, the system no longer interprets the difference between the debit and the credit as work in process but as a variance. In lot-based product controlling orders never have work in process and variances at the same time.
    Variance calculation compares the actual costs incurred for the production/process order with the target costs according to the standard cost estimate for the finished material, and assigns the individual variances to variance categories. The target costs are calculated using the quantity delivered for the order.
    In this way you can find out which variances occurred between the value of the delivery and the actual costs and you can find the reason for the posting to the price difference account for materials with standard price control.
    Variances from production (target version 1)
    Variance calculation compares the actual costs incurred for the production order with the target costs for the production order and assigns the individual variances to variance categories. The target costs are calculated using the quantity delivered for the order.
    This enables variance calculation to find out which variances occurred between the time the production order was created and the end of the production process.
    Variances from planning (target version 2):
    Variance calculation compares the planned costs for the production order with the target costs according to the standard cost estimate for the finished material, and assigns the individual variances to variance categories. The target costs are calculated using the quantity delivered for the order.
    This enables variance calculation to find out which variance occurred between the time the standard cost estimate was created and the time the production order was created.
    Variance categories:
    The system assigns every variance to a variance category. The variance category indicates the cause of the variance (such as price change, lot-size variance). Variances are updated to the information system and passed on to Profitability Analysis according to variance category.
    You differentiate between variance categories on the input side and on the output side:
    u2022     Variances that occur because of goods issues, internal activity allocations, overhead and G/L account postings are displayed on the input side. Price variances, quantity variances, resource-usage variances and input variances are displayed on the input side.
    u2022     Variances that occur because too little or too much of the planned order quantity were delivered, or because the delivered quantity was valuated differently are displayed on the output side.
    Variances on the output side occur when you deliver using a price that differs from that found by dividing the target costs and the delivered quantity. If you deliver using the standard price, a variance can occur when the order lot size differs from the costing lot size. This is displayed as a lot-size variance.
    For config
    3.1.4.2     Variances & Settlement
    Variance Calculation determines differences between the actual costs incurred on a production order and the standard costs of the material produced. Variances are calculated not at once, but for different variance categories. The variances computed are then transferred to CO-PA.
    3.1.4.2.1     Define Default Variance Keys for Plants
    Use
    The Variance Key is part of the order header and controls variance calculation. The system selects the value set by this step as default value when a material master is created. From the material master the variance key then is transferred to the order when an order for the material is created.
    Procedure
    1.     Access the activity using one of the following navigation options:
    Transaction Code     OKVW
    IMG Menu     Controlling  Product Cost Controlling  Cost Object Controlling  Product Cost by Order  Period End Closing  Variance Calculation -> Define Default Variance Keys for Plants
    2.     Make the following entries:
    Plant     Variance Key
    BP01     000001
    BP02     000001
    BP03     000001
    BP0X     000001
    3.1.4.2.2     Define Target Cost Versions
    Use
    The target cost version controls various parameters related to calculation of target costs in variance calculation. In variance calculation, target costs are needed as a comparison to the actual costs incurred.
    Procedure
    1.     Access the activity using one of the following navigation options:
    Transaction Code     OKV6
    IMG Menu     Controlling  Product Cost Controlling  Cost Object Controlling  Product Cost by Order  Period End Closing  Variance Calculation  Define Target Cost Versions
    2.     Choose New entries and enter the following values or copy from default settings of CoArea 0001 to BP01:
    CoArea     TgtCostVsn     Text     Variance Variant     Control Cost     Target Cost
    BP01     0     Target Costs for Total Variances     001     Actual Costs     Current Std cost Est                                
    BP01     1     Target costs for production variances     001     Actual Costs     Plan Costs / Preliminary Cost Estimate
    BP01     2     Target costs for planning variances     001     Plan Costs     Current Std cost Est
    3.1.4.2.3     Create Settlement Profile
    Use
    The settlement profile controls various parameters related to settlement.
    Prerequisites
    Allocation Structure
    Procedure
    1.     Access the activity using one of the following navigation options:
    Transaction Code     SPRO
    IMG Menu     Controlling  Product Cost Controlling  Cost Object Controlling   Product Cost by  Order  Period-End Closing   Settlement  Create Settlement Profile
    2.     Choose New Entries and enter header data. Then for each new entry choose Details and enter remaining data.
    3.     Overview of data records:
    Profile     Text
    YGPI00      BP Process Order w/o CO-PA
    YGPP00     BP Production Order w/o CO-PA
    YGPI00     YGPP00
    Actual costs/costs of sales     
    To be settled in full     X     X
    Can be settled          
    Not for settlement          
    Default Values     
    Allocation Structure     A1     A1
    Source Structure          
    PA Transfer Struct.          
    Default object Type          
    Indicators     
    100% Validation     X     X
    %-Settlement     X     X
    Equivalence Nou2019s     X     X
    Amount Settlement          
    Var. to co. bsd. PA          
    Valid receivers     
    G/L account     N     N
    Cost center     O     O
    Order     O     O
    WBS Element     O     O
    Fixed asset     N     N
    Material     O     O
    Network     N     N
    Profit. Segment     N     N
    Sales order     O     O
    Cost objects     O     O
    Order item     O     O
    Business proc.     N     N
    Real est. object     N     N
    Other parameters     
    Document type      SA     SA
    Max.no.dist.rls     3     3
    Residence time     3     3
    You have to assign Variance Key in material master for semi-finished and Finished goods in costing 1 tab also.
    To Execute
    KKS1-Collective Variance calculation
    KKS2-Individual Variance calculation
    CO88-Collective settlement
    KO88-Individual settlement
    Thanks,
    Rau

  • Variance calculation repport (KKS2) different to variance line items (KOB3)

    Hi, need your help.
    I´ve run variance calculation (KKS2) for one production order, one target cost version and it has calculated correctly all cost element variances. However, when I display variance line items (KOB3) for this order with the same target cost version used in KKS2, calculation is´t correct for all cost element and if I compare it with KKS2 repport, it displays different values. Does anyone know why?
    some details that may help:
    WIP is customize
    The company I´am working for had activated "write line Items" (OKV1) after the golive,
    Scrap check box is activate in variance key,
    All variance categories are activate,
    etcetera
    Thank you for your help.
    Regards,
    André

    Hi
    I would suggest raise an OSS msg then.. Because i dont see any possible reason why this could happen
    In my case, the only discrepancy I found was variance doc was posted to FI and not to COPA because the user did not execute variance calculation in update mode.. So, variance got posted in FI, but not in COPA...
    But the posted values always matched in my case,,,
    Do update us incase you find solution
    Regards
    Ajay M

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