Difference between the Production Order and Product Cost Collector
I wanted to know the difference between production order and product cost collector.
In which cases we will use the production order and product cost collector.
R Brahmankar replied
Transaction for product cost collector is KKF6n. the product cost collector for that particular material,plant for repetetive manufacturing, production version it is used. As cost is collect and settle on period base.
While the production order costing done on order bsae and settelment also carried for order.
In REM settlement is against a period. Because production is not dependent by order. So to settle the cost for all the orders in certain period ex. for a month product cost collector is required. In this product cost collector, cost will store for all the orders.
In Production order or process order, settlement against each order. So no need to create product cost collector.
In production orders can can be used as a Cost object. Since production order is a cost object the costs can be settled to the cost centers or Sales orders using the process order as a cost carrying object.
In REM there is no Production order. Hence Product Cost Collectors are used. The cost can be sttles period or quantity wise.