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author's profile photo Former Member
Former Member

Transfering Production variances to COPA

Hi,

I have doubts about transferring Production variances to COPA.

Will this functionality work both for settlement of variances to GL Variances Account and at the same time for settlement of variances to COPA?

From my experience with cost centers and internal orders, I know that if I want to settle an Internal order both to COPA char and to GL Account, I have to make 100% overhead for the costs gathered on IO. Then I can do the settlement in both directions.

Could you please explain to me the case of Production order variances settlement? I need to have them both on GL accounts and in COPA.

Best wishes,

Karol

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Nov 20, 2007 at 02:47 PM

    Hi

    At the time of settlement of production orders, FI entry also passed as well as variances are also settled to COPA

    In FI, variances will be debited (assuming production order debit is more than what it is settled to Inventory at Std cost) and Inventory changes account is credited.

    In COPA, depending on the variance categories like Price, qty and their assignment to value fields, this amount is transferred.

    For eg, if prodn order actual costs is say 12000 and is settled to Inventory is 10000 (at std cost), and the difference is 2000 and if this difference is due to Price (800) and qty (1200).

    Hope this is useful

    S Jayaram

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    • Former Member

      Thx for answer.

      Could u please tell me how to fill in cost elements or cost element groups in PA variances transfer structure?

      I made 9 assignment lines - as many as variances categories. Whan I am maintaining first assignment - system asks me for cost element or group of cost elements. I don't know what I should put there. I thought that variance category would be enough.

      Should I put in Cost element field - the variances cost element used for PP order settlement?

      Best wishes,

      Karol

  • author's profile photo Former Member
    Former Member
    Posted on Nov 21, 2007 at 12:32 PM

    Hi

    Yes of course. Variance categories broadly classify the nature of variances. but cost elements contain the actual variances.

    S Jayaram

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