Settlement of Production Or.

Settlement Of Production Orders in SAP CO http://w ww.sap-basis-abap.com/sapco010.
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Settlement Of Production Orders in SAP CO

Month End Closing, Settle Production Order by batch - CO88
Received Quantity-> transaction CO03 - click Goto -> Goods Movement - total all the posting for movem
ACTUAL FACTORY OUTPUT = CURRENT MOVING AVERAGE COST * PLAN QTY

(ACTUAL VALUE OF INVENTORY AS AT RECEIVING DATE)
ACTUAL FACTORY OUTPUT = ACTUAL COST OF PRODUCTION = ACTUAL INVENTORY VALU
ONCE THE JOB IS CLOSED, THE SYSTEM WILL UPDATE THE INVENTORY TO REFLECT THE A
COST OF INVENTORY DURING MONTH END CLOSING.
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Example 1
STOCK BALANCE AT Month End - MM03

STOCK VALUE AT Month End - MM03
DIFFENCE BETWEEN ACTUAL AND RECEIVED QUANTITY = Actual Value in Cost Analysis Job A
Received Quantity
RECEIVED QTY FOR JOB A = Goods Movement - total all the posting for movement type 101
THE ACTUAL DIFFENCE UPDATED TO INVENTORY =
PERCENTAGE OF STOCK (STOCK QUANTITY / RECEIVED QTY * DIFFERENCE )
STOCK BALANCE AT Month End / RECEIVED QTY FOR JOB A * DIFFENCE BETWEEN ACTUAL &
= Inventory Amount A (Accounting Document - Inventory)
-------------------------------------------------------------------------------------------------------------------------
STOCK BALANCE AT Month End - MM03

STOCK VALUE AT Month End - MM03
DIFFENCE BETWEEN ACTUAL AND RECEIVED QUANTITY = Actual Value in Cost Analysis Job A
Received Quantity
RECEIVED QTY FOR JOB A = Goods Movement - total all the posting for movement type 101
THE ACTUAL DIFFENCE UPDATED TO INVENTORY =
PERCENTAGE OF STOCK (STOCK QUANTITY / RECEIVED QTY * DIFFERENCE )
STOCK BALANCE AT Month End / RECEIVED QTY FOR JOB B * DIFFENCE BETWEEN ACTUAL &
= Inventory Amount B (Accounting Document - Inventory)
THEREFORE THE TOTAL VALUE OF INVENTORY ADDED TO THIS PART =

JOB A Inventory Amount + JOB B Inventory Amount + STOCK VALUE = Total Value of Inven
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Settlement Of Production Orders in SAP CO http://w ww.sap-basis-abap.com/sapco010.htm
UNIT COST = Total Value of Inventory / Stock Balance at Month End

-------------------------------------------------------------------------------------------------------------------------
Example 2
IF RECEIVED STOCK IS NOT TRANSFER OUT (THAT IS TOTAL RECEIVED IS STILL IN STORE)
JOB VALUE WERE TO BE DIVIDED BY TO TOTAL RECEIVED QTY
JOB A = Actual Value in Cost Analysis Job A / Actual Quantity in Cost Analysis Job A = Job A Unit Price
JOB A = Actual Value in Cost Analysis Job B / Actual Quantity in Cost Analysis Job B = Job B Unit Pric
TOTAL STOCK
QUANTITY = Actual Quantity in Cost Analysis A + Actual Quantity in Cost Analysis B + STOCK BALA
Month End = Total QUANTITY
VALUE = Actual Value in Cost Analysis A + Actual Value in Cost Analysis B + STOCK VALUE AT Mon
Total VALUE
IF RECEIVED STOCK IS NOT TRANSFER OUT, THE NEW

UNIT COST = XXXXX will be lower -> Total VALUE / Total QUANTITY
HOWEVER, BECAUSE THERE IS LESS STOCK THAN JOB QUANTITY, THE EXTRA COST INCU
EACH JOB ARE ACCUMULATED AND BEAR BY THE REMAINING PART IN STORE RESULTING
MOVING AVERAGE COST.
To conclude, if you are using control 'V' for your finished goods (FERT) and your production orders involve
process, it would be advisable (only a suggestion) to train your people to do a settlement once the production
been fully received into store (System status DLV, TECO). This will helps to control the moving average pr
fluctuations as the moving average price is update before any goods is issue out to customers. If you happen
any errors after settlement during the same period, you still can do a settlement reverse. However, if the settl
is different, any error have to be done using the manual journal entries.
SAP FICO Reference Books:

SAP Financial and Controlling Interview Questions, Certification and Configuration, Books
Goto SAP CO Tips:

SAP Controlling
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SAP FI (Financial Accounting) Configuration Hints and Tips
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Settlement Of Production Orders in SAP CO http://w ww.sap-basis-abap.com/sapco010.

Settlement Of Production Orders in SAP CO

ACTUAL FACTORY OUTPUT = CURRENT MOVING AVERAGE COST * PLAN QTY

ACTUAL FACTORY OUTPUT = ACTUAL COST OF PRODUCTION = ACTUAL INVENTORY VALU

STOCK BALANCE AT Month End - MM03

STOCK BALANCE AT Month End - MM03

THEREFORE THE TOTAL VALUE OF INVENTORY ADDED TO THIS PART =

UNIT COST = Total Value of Inventory / Stock Balance at Month End

JOB VALUE WERE TO BE DIVIDED BY TO TOTAL RECEIVED QTY

IF RECEIVED STOCK IS NOT TRANSFER OUT, THE NEW

SAP FICO Reference Books:

Goto SAP CO Tips:

Back to SAP FI Tips:

(c) www.sap-basis-abap.com All material on this site is Copyright.

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