Variance Settlement-COPA is not activated

[former_member218048]

In our scenario, CO-PA is not active. We are in make-to-order situation.

In this case, when we settle the order and variance is calculated, who will be the variance settlement receiver ? I know that, variance is normally settled to CO-PA. But we do not have CO-PA activated.

[former_member218048]

Thanks for the inputs.

[ajaycwa1981]

Hi Niki

The variance GL account is usually not created as a Cost element.. The entry that goes into COPA, it goes via the Settlement Profile i.e. You tick the indicator "Variance to Costing based COPA"

If you have not created the variance GL as cost ele - There will be no CO object required... The posting will simply happen to variance account

If you create it as a cost ele, you need to assign the GL in OKB9 and specify a default CO object

br, Ajay M

[former_member218048]

Ok Ajay..what you mean to say is since no COPA is active, variance is simply calculated and posted into the variance account. Am I correct ?

[ajaycwa1981]

Hi

Yes, thats right (If you have not created Variance acct as Cost ele)

If you create it as a cost ele, you need to specify a default CO object in OKB9

br, Ajay M