MTO Sale Order Costing Variance Analysis

[dawoodkhalid]

Hello!!

Client scenario is MTO sale order based costing with valuated sale order stock having copa activated but no material ledger.

There is no variance analysis node for configuration in cost object controlling under sale order based costing then how can we calculate variance?

CO object is sales order, what would be the period end and order closing activities with tcodes??

[Former Member · Accepted solution]

Hi Khalid,

Variances will be calculated at production order level which will be assigned to Sales Order in MTO scenario. When you run variances for production order and settled to sales order, variances will be posted to sales order and from there it will be settled to COPA in general. First you need complete production order closing and then sales order closing.

Following are the period steps in this case:

KKAX - Work in progress

KKS1 - Variance Calculation for production orders

KO88 - Settlement of Production Orders

KKA3 - Results Analysis for Sales Orders

VA88 - Settlement of Sales Orders

Hope this helps.

Regards,

Santosh Varanasi

[dawoodkhalid · Accepted solution]

Hi Santosh,

Like cost estimate which we run at FERT level only in our scenario, the order settlement is at final order level or should we first settle the semi-finished orders and then final order?

[Former Member · Accepted solution]

Hello Dawood,

Didnt got your issue clearly,  if the final order Material is having Bill of Material as SFG's (the same if you are manufacturing internally), in that case,  first you have to do settlement at SFG order level, then final settlement will be at final order level,,

please correct me, if am wrong,,,

rgds,

ravi

[kamalkumar_biswas2 · Accepted solution]

Hi Dawood

If you have more order you can run Plant wise at a time

WIP  KKA0

Variance KKS1

Settlement CO88

Or  in SE38 select      

For WIP  SAPKKA07

      Variance  RKKKS1N0

      Settlement  RKO7CO88                    

Kamal