Skip to Content
author's profile photo Former Member
Former Member

Rework Order for Process Manufacturing

Dear All,

Could you please let me know the process of Rework Order process for Process Manufacturing Industries and what is the impact of same in Product Costing with Financial entries.

I would like to know more how cost will be calculated for rework orders and also whether material standard price will be get updated or else it will be Variance calculation will happen through T.code - KKS5 or KKS6.

Once we variance calculation at month end after running settlement where the cost will flow.

In case if ML is activated what will be the impact.

If you guys have any documents related to the same , kindly mail me to grvsurana@gmail.com

Regards,

Gaurav Surana

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

4 Answers

  • author's profile photo Former Member
    Former Member
    Posted on May 31, 2016 at 09:25 AM

    Any Update Guys?

    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on May 31, 2016 at 10:10 AM

    Hi,

    KKS6 is run for the material wise variance calculation

    KKS5 is for plat wise variance calculation


    https://scn.sap.com/thread/3170487


    kind regards,

    Sanju M S

    Add a comment
    10|10000 characters needed characters exceeded

    • Former Member Sanju Sivan

      Hi,

      In-case if Original Process/Prod Order have been settled and cost is released, material price will be get updated , however if any rework order will be there than how system will behave for the same?

      What will be the entries which will occurred during course of action?

      In case if Material Ledger is active than what will happen?

      Normally we release or update standard cost estimate once a year or monthly its depends on client but what does SAP best practice suggest for teh same.

      Appreciate your quick response on the same.

      Rgds,

      Gaurav Surana

  • Posted on May 31, 2016 at 12:04 PM

    Dear Gaurav,

    Could you please let me know the process of Rework Order process for Process Manufacturing Industries and what is the impact of same in Product Costing with Financial entries.

    1. Create Rework Process order

    2. Issue goods with respect to process order ( For Defective material)

    3. Goods confirmation for production activities

    4. Post goods receipt with respect to process order.


    The cost associated with rework process order will be settled as material variance.


    Regards

    Mani Kumar

    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on Jun 05, 2016 at 09:07 PM

    Hi Gaurav surana,

    The financial Impact is same for production order or process order, I am very much familiar with production order so explaining the course of action at production order for rework.

    Create an operation in routing for rework by selecting the control key relevant for rework, and confirm the rework operation... by giving materials and activities to the selected operation. the cost related to the unexpected rework order will be posted as variance for materials as Input Resource usage variance and for activities as Input Qty variance. and settled to PRD account while settling the variances. no change to standard cost estimate. working with Production or process order doesn't change the Std cost estimate.


    and there are other options are also available for rework of production order.... please find the below link.


    Rework in Cost Object Controlling - Cost Object Controlling (CO-PC-OBJ) - SAP Library

    For Material ledger - For raw materials consumption ML document will be posted as consumption to Production order and For Finished Goods as Receipt against production order/material. we need to run revaluate consumption , WIP revaluation and Post closing to update the variances to FG and need to execute mark material prices for revaluation of Std cost by considering variances, if you want to consider the new periodic unit price created by actual costing as Standard price for your FG.

    Thanks and Regards,

    Surendra kumar kotha FICO.

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.