on 08-17-2007 12:31 PM
Dear all,
what is period end closing???
Pl. enlist all period end activities for product costing by order scenario.
what inventory adjustments are necessory.
what FI entries required to post??
With respect to PP- Period end closing is the procedure to close all the production orders and see that cost is flowing from production order to material
During period end - we TECO all the orders and see that production is complete from PP angle. Then costing will calculate over head/variance and settle the difference to production material or price difference a/c depending on the production material price control.
Just see below the example of a production and costing entries. Thi8s may be helpful to understand the concept.
Planned price
Planned Material cost = 115.15USD
Planned Activity cost = 6 USD
Planned Over head = 25% of material cost+ 250% of activity cost = 28.79+15=43.79
Total cost = 164.94
Product cost as per S price = 1 USD (example)
After GR and confirmation
Actual Material cost = 7456.55 USD
Actual Activity cost = 2USD
Total cost = 7458.55
Actual O/H = 0
Production variance = 7293.61 USD
After o/h calculation
Actual Material cost = 7456.55 USD
Actual Activity cost = 2USD
Actual O/H = 25% of material cost+ 250% of activity cost = 1869.138
Total cost = 9327.69
Production variance = 9162.75
After settlement
Actual Material cost = 7456.55 USD
Actual Activity cost = 2USD
Actual O/H = 25% of material cost+ 250% of activity cost = 1869.138
Total cost = 9327.69
Production variance = 0
Variance will be settled to Price difference a/c.
When we do the GR the FI a/c will hit as below
Production order expense a/c -
stock a/c +
When we GI the following a/c will hit
Raw material a/c -
Production order expense a/c +
When we settle
Production order expense a/c + or -ve
variance a/c = + or -ve
I hope this will help you.
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HI Ranjeet
we do period end closing after when we do TECO for Production order
for all TECO do Overhead calculation KGI2 for ind. and col. CO43
then do WIP calculation ind. KKAX and Coll. KKAO
then we do Veriance calcul. ind. KKS2 in Coll. KKS1
then in last we need to do settlement KO88 and CO88
Thanks
Bala
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Hi Ranjeet
You can use the tcodes for MMPV-CLOSE PERIODS. Once you close the period and after that use the tcode for MMRV-Allowing posting period to previous period.
you can colse the period by using MMPV and after that you can post that particular period by using MMRV.
Also check fot the below link
http://help.sap.com/saphelp_46c/helpdata/en/46/f42c7dd435d1118b3f0060b03ca329/frameset.htm
If helpful reward points
Regards
Dhananjay
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Hi,
Pls check the link given below
http://help.sap.com/saphelp_47x200/helpdata/EN/90/ba656d446711d189420000e829fbbd/frameset.htm
Regards,
Irshad
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