No amount settled to CO-product - REM

[mageshchandran]

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

[mageshchandran]

Please suggest solution to overcome the issue.

Thanks & Regards,

Magesh

[coleti]

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 don´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

[mageshchandran]

Dear Gabriel Coleti,

I understand that period-end process is to settle variances from PCC order to material through CO88 transaction code.

But, in our case, system not settling variances to co-product, whereas entire variance got settled to main product through CO88.

Doubt that how system split the variances to main and CO product ?

best regards,

Magesh

[coleti]

Dear Magesh,

The CO-product do not have an CO object to collect the costs during the manufacturing process, that's why you don't have variances during the settlement process.

In the first moment, the main product will collect the variances and you will allocate this to material ledger which thru the Multi-level step will assign the variances to your co-products.

Best regards,

Gabriel Coleti

[mageshchandran]

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.

[former_member198692]

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

[mageshchandran]

Hi,

In our case there is no PCC order generated for CO-product, since it does not have production version. Only main product has PCC order number and PV concept.

Regards,

Magesh

[mageshchandran]

Dear experts,

Please suggest on how to solve the above issue.

Magesh