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Former Member

order settlement

Dear all,

Can anyone explain about production Order settlement?in detail

Advance thanks

Regards,

Renuga.A

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2 Answers

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    Former Member
    Oct 06, 2007 at 10:29 AM

    Hi Renuga,

    This is the scenario of Priduction order settelment and orders settlement

    Hope this infirmation will helps you

    The settlement profile must be in the definition of the Order Type to generate automatically. You may have both parts created, but the settlement rule is not assigned to the Order Type.

    Define Production Order Type - Tranx OPJH

    Under Cost controlling see what settlement profile is there.

    If none, go to next step, create settlement profile and then enter that profile in OPJH.

    Settlement Profile: Create settlement profile - SPRO > Controlling > Product Cost Controlling > Product cost by Order > Period End Closing > Settlement > Create Settlement Profile

    Enter Settlement profile from OPJH or Choose one for production order

    configure Settlement profile. This should be done with input from or done by Cost Accounting personnel

    Actual costs/Cost of Sales - usually "To Be Settled in Full"

    Default values

    Indicators

    Valid Receivers - among other selections - this is where MATERIAL is allowed to be a Receiver of settlement

    <b>General Infirmation about orders</b>

    Settlement of orders are based on settlement profiles assigned to order type. you must maintain valid settlement parameters for the order. The settlement parameters include a settlement profile and a settlement structure:

    Settleemnt profile contains settlement rule and The system automatically assigns a settlement rule to the process order when the order is created. The assignment is carried out via the default rule defined in Customizing.

    The settlement rule includes one or more distribution rules for the production order. The distribution rule consists of a cost receiver, a settlement share and a settlement type:

    The settlement receiver determines to which cost object the actual costs of the production order are to be settled. Possible receivers include

    a material

    a cost center

    an internal order

    a sales order

    a project

    a network

    a fixed asset

    The settlement share determines the percentage rate or the equivalence number to distribute the costs to the individual cost receivers.

    The settlement type determines whether all the costs are settled which were incurred for the order (full settlement) or whether the costs collected on the order are to be settled periodically (periodic settlement

    Hope this infirmation helps you

    Prem

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  • Oct 06, 2007 at 04:06 PM

    Hi Renuga,

    In addition, pl. find below the transactions used during order settlement process of production order.

    Individual order processing & collective processing.

    Descp: Individual : Collective

    1.Overhead KGI2 : co43

    2.WIP KKAx : KKAo

    3.Variance KKS2 : KKS1

    4.Order Settlement Ko88 : co88

    Regards,

    Senthilkumar

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