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Month End Closing: Steps to be followed for Repetitive Manufacturing (PCC)

Former Member
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Dear CO Experts,

I have searched the forum for the mentioned topic but did not get a satisfactory reply on this.

Please help me to understand the step by step month end closing activity for the repetitive manufacturing (PCC).

Please forgive me for this basic question, but point is that I have discussed people with goods experiences  and they do not know it.

Regards

Ruksana

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
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Thanks Ajay.

I know what you said about date. I have taken ideal scenario where all bills/provisions are posted till last day of the month for the current month.

True monthly KP06 planning is not required it can be done, its optional. But standard cost is required monthly for immature system (newly implemented system).

This list is for where auto rates are calculated and not manual.

Now a following query

Logic of KSSI is weird, do you remember its calculation logic?. It is not that simple we we think, right?

Forgive me for this following query.

Regards

Ruksana

ajaycwa1981
Active Contributor
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Hi Ruks

KSSI? I think you mean KSII..

Well, the actual logic can have many variants in it.. Ultimately what it does is to divide the costs with quantities to calculate the price

Incase you meant KSS2, it will just split your activity independent costs between activity types And / Or do the marriage between some specific costs and activity type And / or exclude some specific costs from the activity price

Lets not complicate the thread by too many Qs in it.. I hope the original issue is addressed.

Rgds

Ajay M

kamalkumar_biswas2
Active Contributor
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Hi Ruksana

  Though it is not logical to intervene the discussion between you and Ajay ..srry I want to share some points from my end:

1. If you have ML/Act costing is active always better for yearly standard cost release because after CKMLCP it will give you actual cost at period end.

2. But in absence of ML/Act cost sometimes to minimize the PRD monthly std cost update with current input price is taken into consideration

3, I think you ask for KSII not KSSI.. why are you telling not simple..logic is same:

    Actual cost for the period/ Act activity qty confirmed

   But point is when you book your activity during a period it is booked at standard rate and only after revaluation at period end it converts to actual value

Kamal

Former Member
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Hi,

Yes, KSII. KSS2 and then KSII its seems to be weird.

Regards

Ruksana

kamalkumar_biswas2
Active Contributor
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Hi Ruksana

First of all we should understand the effect of cost splitting (KSS2) ..

Suppose we have more than one activity in prod cctr ACT01  and ACT02 now some common SEC cost has flown to prod cctr through allocation (Assessment/Activity allocation) from other CCtr as a share of cost to prod CCtr..

question is how this cost will split to ACT01 and ACT02 when you calculate act activity rate of these 2 activities..so forst you have to run KSS2 to split the cost of SEC cost as per splitting structure to split/allocate the cost to multiple activities of your prod cctr then run KSII to calculate act price of prod cctr/deptt.

So, if your prod deptt has only one activity KSS2 is not required

Kamal

Former Member
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Hi Kamal,

I have two query on splitting structure.

1. Can we split cost of one GL to multiple assignment (activity type) of OKES. In my case it is picking the first assignment and allocating all cost there.

2. What is operating rate (column) in KSS2, what value does it show?

Regards

Ruksana

kamalkumar_biswas2
Active Contributor
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Hi Ruksana

Read this doc

Kamal

ajaycwa1981
Active Contributor
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Hi Ruks

Its the same as Discrete scenario (Production Orders).. There is hardly any change

1. KB11N - Correction Entry

2. KB31N - Post SKF

3. KSV5 or KSU5

4. KSS2 and KSII - Incase you calculate actual activity rates

5. CON2 - Revaluation with actual activity price, if you are doing it

6. Enter Overhead rates - KZM2 and / or one more T code

7. Apply Overhead - CO43

8. Calculate WIP - KKAO

9. Calculate Var - KKS2 or KKS6

10. Settlememnt CO88

Agree with me now? 😉

Br, Ajay M

Former Member
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Hi,

Thanks Ajay.

I am running  splitting structure (KSS2) it is giving me error Message no. KD302. This transaction is very difficult to handle. COnfig and seems to be fine here. Is there something that I can check.

Culprit point seems to be below one. As the moment I change 1 to 3 three in any of oner activity type in the cost center (KP26),  it starts giving me warning message 'KD301' and KD302 disapears. But it is also not updating actual rate.

"the total of the activity type equivalence numbers is zero. Therefore, there is no splitting base for this cost element."

Regards

Ruksana

ajaycwa1981
Active Contributor
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Hi Ruks

1. Check actual price indicator in act type and ksbt
/kbk6

2. For manual price, maintain the price directly in kbk6

3. If you wanna calculate from system, use method 12 actual qty a as splitting rule in splitting structure

4, assign your mfg cost centre to the splitting structure in okew

5. In the absence of splitting structure, system uses equival no from kp26. By default it is 1

btw, this issue is a different one. We are supposed to have one issue per thread

Ajay M

Former Member
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Hi Ajay,

1.  I am testing to calculate actual activity price from system (KSS2--->KSII)

2. Activity Type having 5 as actual price indicator

3. Everything seems to be okay still I am getting error 'KD301' and KD302 .


Have you experienced this situation.


Excuse me for the different issue for this thread.

Regards

Ruksana

kamalkumar_biswas2
Active Contributor
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Hi Ruksana

This message is coming when there is issue in splitting structure and CCtr assignment in structure.

Check the structure whether rule is taken 12 or not.

Also assign all cost cctr in structure because if there is any cost coming through SCE to your  acitivity of prod CCtr will split and do not cause any error.

Kamal

ajaycwa1981
Active Contributor
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Hi Ruks

refer points 3 and 4 in my reply

Ensure your splitting structure has splitting rule based on activity qty and assign mfg CC in it (okew)

@Kamal- you should not assign all CC in it. Only those CC for which you wanna calculate activity price must be there

Ajay M

kamalkumar_biswas2
Active Contributor
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Hi Ajay

I had tested one scenario where even I assigned prod cost centers having activity giving me error..because some expenses coming from down below activities through allocation and when I assign all cost centers ( as I don't go for pick and choose) it was working fine and there is no harm to assign all cctrs because if any cctr is not involve will not be effected.

However , choice is yours..

Kamal

Former Member
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Dear Ajay,

I have done all these basic stuffs. Still some issues and error are coming.

Further information:

I have put plant activity rate in KP26 manually.

is it mandatory to plan independent planning in KP06? or KSS2 can be run without planning in KP26. Though actual posting are there in production cost center which are assigned to OKES and OKEW.

Regards

Ruksana

ajaycwa1981
Active Contributor
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Hi Ruks

Not withstanding any bug in Simple Finance, this is what I feel.. If it does not help, raise an OSS message

1. You can always enter plan rates in KP26 manually.. Ensure that Plan Price indicator in Act Type Master is set to Manual Price (I think it is 3)

2. If you want to calculate actual price automatic based on activity qty, ensure that

a. Actual Price indicator in Act Type Master is set accordingly

b. Also, check the indicator in KBK6... Set it to "automatic based on activity qty"

3. Splitting Structure is what you say you have ensured. But please provide a screenshot (OKES and OKEW) for me to review..

4. Now do KSS2 and provide screenshot of the error if it is still there..

5. Also do KSII and see if there is any error / act price is fine

Rgds

Ajay M

Former Member
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Hi,

Is my understanding correct?. Please check if it is perfect or just good. Please make help me to complete this list. What would be in case of process order?

Thanks in advance Ajay.

DateStep No.Costing StepTransaction Code
(Repeatitive)
Transaction Code
(Discrete)
Process Order
Remarks
Last day of the month1Manual Correction Entry (If any)KB11NKB11NWill it remain same?
Last day of the month2Post Statistical Key Figures (SKF)KB31N KB31N Will it remain same?
Last day of the month3Distribution of CostKSV5KSV5Will it remain same?
Last day of the month4Assesment of CostKSU5KSU5Will it remain same?
Last day of the month5Actual Cost Splitting RunKSS2KSS2Will it remain same?
Last day of the month6Actual Activity Rate CalculationKSIIKSIIWill it remain same?
Last day of the month7Revaluation at actual activity prices for Product Cost CollectorCON1 / CON2CON1 / CON2Will it remain same?
Last day of the month8Actual Overhead Calculation of Product Cost CollectorCO42 / CO43CO42 / CO43Will it remain same?
Last day of the month9Calculate WIPKKAS / KKAOHKKAX / KKAOHWill it remain same?
Last day of the month10Variance Calculation of Product Cost CollectorKKS6 / KKS5KKS2 / KKS1Will it remain same?
Last day of the month11Settlement of Product Cost CollectorKK87; CO88HKO88; CO88HWill it remain same?
Last day of the month12Cost Center PlaningKP06KP06Will it remain same?SAP S/4 HANA still supporting
Last day of the month13Activity PlanningKP26KP26Will it remain same?
Last day of the month14Plan Cost Spliiting RunKSS4KSS4Will it remain same?
Last day of the month15Plan Activity Rate CalculationKSPIKSPIWill it remain same?
Last day of the month16Overhead Rate Maintenace (if required)KZS2KZS2Will it remain same?May be Other Tcode
Last day of the month17Standard Cost CalculationCK11N / CK40NCK11N / CK40NWill it remain same?
Last day of the month18Standard Cost Estimation - Mark UpCK24 / CK40NCK24 / CK40NWill it remain same?
Last day of the month19Standard Cost Estimation - ReleaseCK24 / CK40NCK24 / CK40NWill it remain same?

Regards

Ruksana

ajaycwa1981
Active Contributor
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Hi Ruks

1. List compiled for month end process is perfect. Just check if kkaoh can do wip for PCC. Until 1503, it was able to do for prod orders only

2. Even for process   orders the list remains same

3. Month end processes start after.all Fi postings are done. Hence may not be on the last day of the month

4. Why would you do Kp06 at month end. This is ideally at year start

5. Same as 4 for Std cost run. Not a good thing to revise std cost each month

6. Last, if you do kp26 to enter activity prices manually, you wont need kss4 # kspi.

Br. Ajay M