Period end process & redefining costs

[juliocesarquion]

Dear all CO gurus,

I have a scenario, I'm not a CO expert but I'm confident that with your valuable inputs I'll be able to figure this out, here is the scenario.

Here we do process orders, we have worked since the last 2 months (March & May) without doing any settlement, or variance or WIP calculation, so my first question is, are all these mandatory processes?

Ok now let me explain how do we want this process to work. We have Std price for Finished goods, but we eant these to revaluate monthly according to the cost of all the process orders done of each particular material, so if for a material there is NO production order then this material won't get a new std price. What process do I need to run in order to "revaluate" the material based on the above? Also what should be the best way to handle this considering I already have a bunch of process orders (from the last 2 months)

Also in the cost of each order manually the production guy has to enter some costs that we know them only after the production order is done so I defined activity types, and prices and assing them to the work center but when confirming the order and putting these values, I dont see how these affect in the order at all, hope you guys can trough some ligh on this too

Please give me the Tcodes I need to do this I am trying to do KKAO, KKS1, CO88 CK40N, CK11N but I don't know the order in which I should use them or even if these are the correct transactions to use, and maybe I am missing some configuration also

I will be so great if you guys can help me out.

Thanks in advance.

[ajaycwa1981 · Accepted solution]

Hi Julio

Yes, all these are mandatory processes if you want to analyse good reports from the system relating to variances, WIP, etc

2nd, What you want is to revaluate the Std cost based on Actual cost of Production orders... Only Material Ledger module of SAP can do this... There is no other way possible in the standrad system

There is a workaround I used which assumes that All Master Data (I.e. BOM & Routings) are correct and the major reason for variances is Price differences (Raw mat & overheads)

Refer this thread, where in I have explained it..

br, Ajay M

[juliocesarquion · Accepted solution]

Hi Ajay,

Thank you so much, your thread was very helpful, but I think in my case I need to revaluate the FG and SFG not also because of procurement cost but also for qty costs and also because manufacturing costs, so what I understand from your thread is that this is not possible unless I activte ML? any other ideas for workaround?

Then how other companies handle different manufacturing costs at the end of the month?

Also how can I know which orders are already settled and which ones are still waiting to be settled, what does the settlement process exactly does? what is the effect on financials??

Thanks and regards

[ajaycwa1981 · Accepted solution]

Hi

Yes, ML is the only option for you.... Any other approach is just going to be half hearted...

Refer this thread by Shaubhik...

He explains a Z development as an alternate to ML....

When settlement happens, the system displays a list of the orders settled... You can see the list from there... Or go to your variance account > Display the Line items and you will get the Order No in some text field or AUFNR field

br, Ajay M