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Settlement of Variances, Projects, etc. to COPA

Dears

We do not have COPA activated in our system. We are going to implement it soon.

When we settle the variances, Projects, Maintenance Orders, etc. to CO-PA, what is the effect in FI ? Will the settlement to COPA create FI documents simultaneously ?

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    author's profile photo Former Member
    Former Member
    Posted on Jan 09, 2014 at 09:11 AM

    Hi..

    Below sap help site is helpful for your understanding.

    Please read and study the sap help portal site.

    http://help.sap.com/erp2005_ehp_07/helpdata/en/90/ba66cc446711d189420000e829fbbd/content.htm?frameset=/en/90/ba81d244671…

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 09, 2014 at 09:27 AM

    The effect of settlement of any cost object (it may be production order, maintenance order or project) falls on both FICO modules based on the cost object’ status and configuration (especially related to RA & others).

    Whereas:

    In layman terms settlement means moving values (costs/revenue) from one cost object to the other. Ex: here moving costs from project to COPA (PSG). Which in turn reduces the values from sender and increases the values to the receiver

    If this is the case there won’t be any effect on FI at the time of settlement for cost objects like projects and maintenance order.

    FI entry: No

    CO Entry will be:

    Dr/Cr maintenance order/project (Dr- in case of revenues and Cr-in case of costs)

    Cr/Dr PSG-COPA (Dr- in case of costs and Cr- in case of revenues)

    Where as in case of production orders, if you are settling on Material (majorly we do this), we will have affect both on FI & CO at the time of settlement.

    FI entry:

    Dr/Cr production variance

    Cr/Dr COGM

    CO entry:

    Dr/Cr production order (if you make production variance GL as cost element)

    Cr/Dr production order

    If you activate variance value flow to COPA and maintained PA transfer structure, then values flow to PSG-COPA also.

    As I said if we have RA calculation, then settlement considers the status of Cost object, whether it is released, partial delivered, delivered, TECO etc.

    In this case even though the order status is TECO/Delivered, we see an FI entry for the reversal of WIP/reserves/COS calculations along with above entries.

    NOTE: there is no concept of RA calculation for maintenance orders

    Regards..

    Jose

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  • Posted on Jan 09, 2014 at 09:26 AM

    Hi,

    When you settle an order, variance will be transferred to COPA, based on settings in the settlement profile "Variance to Costing-based COPA". You can check the entries for FI and CO entries. If you don't settle also, variance will be transferred to FI.

    The purpose of settlement is to transfer the variance to COPA.

    BR, Srinivas Salpala

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