TECO & SETTLEMENT for production order

[Former Member]

Dear Experts

I wanted to know if we are following Standard Costing & our price control is S,

We have to do TECO & settlement on daily basis or Monthly basis.

Please advice whats the effect.

Regards

Sandeep patil

[kaushik_choudhury2]

Hi Sandeep ,

There are number of factors that we need to take care of before comming to the conclusion.

What is the settlement rule - material , order , cost center etc ?

What is the industry for which we are speaking of - Discrete , Repetitive etc ?

What is the profit analysis time frame ?

There are other factors also involved in the same ........

But as per my exp if there is discrete mfg normally as a thumb rule it is done before the month end (Period closing)

Please take into consideration the idea behind TECO from PP perspective is to release the reservations against that order......

Regards

Kaushik

[Former Member]

Hi,

To calculate costing, doing TECO daily or Monthly is not necessary.

TECO means technically complete. Order was prematurely completed because of many reasons like material shortage, capacity shortage like that.

If you are work with discrete you have to do the settlement for each order completion.

If you work with REM to settlement for a period wise, normally monthly basis.

Regards,

Dharma

[Former Member]

Hi

TECO is the status "Technically completed"

The orders which have TECO status will be taken for settlement.

This is the orderwise settlement .whether you do daily what ever orders have TECO status Or once in a month select the orders with TECO status & settle, it does not not matter.

Can you explain what is your issue in this.

Regards

YMREDDY

[Former Member]

Dear Reddy

I wanted perfect price valuation & price.So i had asked this question.

Regards

Sandeep patil.