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No amount settled to CO-product - REM

Experts,

We have a scenario in REM like, an amount arises out of variances got not settled to CO-product but it settled only to main product.

For info, we already maintained

1. CO-product indicator in material master and BoM.

2. -Ve norms against CO-product in BoM.

3 .Apportionment structure and its equivalence numbers.

Please support on how to split the settlement to both CO and main product ?

(We are in ECC 6 / EHP 6 and ML/Actual costing active.)

best regards,

Magesh

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4 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Sep 03, 2016 at 10:53 AM

    Dear experts,

    Please suggest on how to solve the above issue.

    Magesh

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  • Posted on Sep 06, 2016 at 05:45 AM

    Hi

    Do preliminary settlement for Co product with CO8B first then do KO88 check below link for your reference

    Two types of Settlements | SCN

    Regards

    Prasad Patil

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  • Posted on Sep 06, 2016 at 01:37 PM

    Dear Magesh,

    In the REM process, you will have a Product Cost Collector which is an internal order with Order category 05 for each production version of your material.

    The period close process is to settle the variances from this order to material ledger where you perform CO88 transaction code.

    At this moment (if you donĀ“t have WIP process) your internal order (product cost collectors) will have Zero Balance (check S_ALR_87012993 report).

    The material ledger will be the responsible to perform the Multi-Level and post these variances to the co-product where you will see that in the Consumption analysis in CKM3.

    Best regards,

    Gabriel Coleti

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    • Former Member Gabriel Felipe Coleti

      Dear Gabriel Coleti,

      Sorry for late reply.

      Variances from lower level is getting transferred to co-products through ML multi-level, no issues we found in it.

      The issue is that variances arises out of single-level is not proportionately distributed.

      Say:
      A is a main product
      X1 is a CO-product
      Apportionment structure is 50:50

      Bill of materials is like
      A
      B (bought-out matl)
      C (in-house produced matl)
      c1 (bought-out matl)
      c2 (sub-contract matl)
      X1 (with -Ve norm)

      Here, variances arises out of 'C' is perfectly transferred to main (A) and CO-product matls (X1) as per apportionment structure.
      But, variances arises out of 'B' and A's in-house activity cost are not transferred to CO-product, those differences still lying at A product only.

      best regards,
      Magesh.

  • author's profile photo Former Member
    Former Member
    Posted on Sep 09, 2016 at 06:12 AM

    Please suggest solution to overcome the issue.

    Thanks & Regards,

    Magesh

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