Production Order Settlement - Settlement Cost Element

[Former Member]

I have a n; eed to settle costs that have been collect on a production order to a particular settlement cost element account.

During settlement of the production order, which is setup to settle to an internal order, the need is to have the orignal cost element that charged the production order to be credited and the expected cost element to be debited. The goal is to have the ability to differenciate on the G/L production activity for internal manufacturing from billable Production activity.

The following are the desired postings:

Production Order Actual Posting:

Material : Credit Inventory, debit material consumption

Labor: Credit cost center, debit labor consumption

Overhead: Credit cost center, debit overhead consumption

Production Order Settlement to Internal Order:

Material : Credit material consumption, debit settlement cost element

Labor: Credit labor consumption, debit settlement cost element

Overhead: Credit overhead consumption , debit settlement cost

To achieve this we have created an allocation rule and defined the settlement cost element for receiver category ORD. However, neither of the standard options producted the above postings. Instead, either the original cost element or the settlement cost element is credited.

Is it possible to configur the system or implement User Exits/Bapi/ Badi to do the above postings?

John Gardner

[Former Member]

John, I'm afraid what you are trying to do is not possible. When you are doing settlement of the type you described you are doing a CO allocation. As such, a debit and credit must be made to the same cost element. You do have the option of using a secondary cost element (category 21) for the settlement or using the orginal primary cost elements. In either case, the credit to the sender object and the debit to the receiver objects (in this case an order) will hit the same cost element in both.

Another settlement option is to settle to a G/L account. You do that by using a settlement cost element of category 22. In this case you are also doing an FI posting, so the debit and credit posing can be made to different accounts. With this type of settlement a credit is issued to your sender object using the category 22 cost element and a debit is posted to the receiving G/L account that you specified in the settlement rule. If you want to use this type of rule make sure your settlement profile allows settlement to a G/L account. In you allocation structure assign a valid cost element of category 22 to receiver category G/L. Then in your proudction order, assign G/L as the settlment object and specific which G/L account the costs should be settled to.

thanks,

[Former Member]

When settling to the G/L, is it possible to also hit the IO???

Reason being, the FI organization uses the IO to collect the cost from multiple Production Orders and Purchases in order to charge back to their customer.

Is that possible???

[Former Member]

Hi,

I have the similar problem you face earlier.

Can you share the outcome with me? You found a solutions for your problem?

Thank you so much.