MONTH END CLOSING ACTIVITY

[Former Member]

Dear all

pl, explain few questions

1) What r the month end closing activities done in SAP PP?

2) How do u capture product cost?

3) What is Teco, closing a prod. orderand order settlement?

thanks

Raj

[Former Member · Accepted solution]

Month End Closing activities are -

http://www.sap-img.com/production/pp-year-end-to-do-list.htm

Technical Completion of Orders, Variance Settlements, WIP Calculations, Closing of Orders, Standard Cost estimates and release ofr next period.

TECO -

An order is technically completed only if you think that the order processing is completed and there is nothing from the order that is expected. Taking an example - Order1 is processed to completed and the GR is posted 80 out of 100 expected from the order. Now you know that the order is completed and there is no output expected from that, then until unless you TECO the order, during MRP or availability checks the system expects the balance and considers this to be expected stock.

Once you TECO the order the order will not be considered for any calculations, i.e., you will not find it in Stock Requirements list, All the open items like Reservations, Capacities... will be closed once the order is TECO.

Hope this helps you.

[Former Member]

Hi Raj,

1) What r the month end closing activities done in SAP PP?

Wun WIP (KKAX/KKAO) and settlement KO88/CO88. Prior to this carry out TECO for all orders which are technically complete.

2) How do u capture product cost?

Product costing is done using quantity structure generally for production using BoM and routing costs which are basically material and labour costs. The transaction used for this CK11N. The planned cost is captured in the order when you create a prod order. The actual costs are booked to the order when you post the goods issues and perform confirmation. The planned costs for labour are derived based on the activity prices for every activity which are linked to the standard values of the operation. Activity prices are maintained in Co using KP26 transaction.

3) What is Teco, closing a prod. orderand order settlement?

TECO means Technically complete. By setting TECO the order from logistics point is set as complete. The pending reservations are deleted. The prod orders are not considered to deliver goods anymore. So will not appear in your stock/reqmnts. But still you could post goods issues. By Closing the production order you cannot post any document. It is financially closed. The pre-requisite for CLSD status is that the order balance is set to zero. By settling an order it means the order balances if any are brough to zero by posting the balances to relevant GL accounts. To WIP account if still WIP exits or to Material account if it is TECOed or fully delievred.

Hope this helps.

Regards

Ram