Skip to Content
avatar image
Former Member

SAP Year end closing

Dear Experts,

We revalue our FG stocks on 31/12 by using CK40N. The new year costing is released on 02/01 or 03/01 using CK40N. In this case since we have standard cost estimate released on 31/12 we block the system to be used. So production orders are delayed entry for 2 days and QC cannot perform reading on the orders. The system is blocked to avoid using the old standard cost estimate and getting price variance on confirmation of orders.

Please let me know that how can we avoid system blockage in the following circumstances:

1. If we release standard cost estimate in advance then what will happen with the stock revaluation which is done on 31/12?

2. How does the system takes care of stock revaluation?

3. Which cost is used by production orders and how can we avoid variances?

4. I think we should use MR21 to update standard cost on 01/01 and after closing we should use CK40N to release the standard cost estimate.

5. If we use MR21 to update standard how will the variance be calculated on the production order?

Kinldy let me know what companies do on year start on 01/01? Do they block the system or they give the system to enter production orders and QC?

Waiting for the answer.

Best regards,

Abid Hussain

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

2 Answers

  • Jan 04, 2015 at 08:16 AM

    Hi

    Your query is not very clear to me. But some hints are given herein below to make you understand the situation.

    A thumb rule for GR to production order is that system will take price for GR from material master which is available as on the date of GR.

    As soon as you release a standard cost system re-valuate the stock available on that date.

    System will not be able to categorise variances if std price is given through MR21.

    Regards

    Rajneesh

    Add comment
    10|10000 characters needed characters exceeded

  • avatar image
    Former Member
    Jan 04, 2015 at 10:28 AM

    Hi

    Best practice is release standard cost day 1 of the next year after blocking all users access so that no material movement is happened till new cost is updated. So in my previous company always it was at just after 12 pm of the previous day we released standard cost.

    Now my views to your queries in addition to Rajneesh..

    1. If we release standard cost estimate in advance then what will happen with the stock revaluation which is done on 31/12?....System will not allow to released new standard cost for materials already having standard cost for which material movement is happened. And will create many inconsistency..so not advisable

    2. How does the system takes care of stock revaluation?....Already told by Rajneesh

    3. Which cost is used by production orders and how can we avoid variances?....Prod order is taken GR value as defined in MMaster..if Price control is "S" it has taken standard cost and if "V" taken MAP....You can avoid variance if remove Variance key from your order

    4. I think we should use MR21 to update standard cost on 01/01 and after closing we should use CK40N to release the standard cost estimate......It will give effect at Material level not at order level

    5. If we use MR21 to update standard how will the variance be calculated on the production order?....Not possible

    I think this may give you some light on your quries

    Add comment
    10|10000 characters needed characters exceeded