Production Order Settlement to Cost Center

[Former Member]

Hi

We have created new order type through PP module and assigned the new settlment profle with a DEFAULT OBJECT TYPE IS CTR. (We want to settle these production orders under thie above said production order type to cost center).

However, while creating new production order, system by default selecting teh settlment rule to MAT (Material)

will guide us, have we need to carry any further configuration steps?

Regards

Anilkumar

[Former Member]

Hi Anil,

That is the way SAP behaves.

Normally when you create a production order type with material, settlement rule with MAT is automatic. You cannot avoid this.

But if you want to settle to Cost Center you need to manually add another settlement rule for cost center. make 0% for MAT settlement rule and 100% for cost center settlement rule. This is the way it need to be handled.

But if you create a production order without material (using co07 t.code), then you will not get this problem. you will have default settlement rule being created as per the settings in Settlement Profile.

Hope this will solve your issue

Best Regards

Surya

[Former Member]

Usually if you use Moving average, the first situation arises, and the second if you use Standard price. (For the finished good).

[Former Member]

Dear Piet

Thanks for your reply. even thou, our customer is using the price control as "V" and he still want to post to the price variance. Is there any way to get the following accounting entry

Price Variance Dr XXXX

To COGS Cr XXXX

Please reply

Regards

Anilkumar

[Former Member]

Hello Anil,

Have you got any satisfactory reply on your question ?? If you have sorted it out...please share.

Vineet

[Former Member]

Hi,

Check in Product Cost Controlling > Cost object Controlling > Product cost by order > Manufacturing Orders > Define

cost accounting relevant default values for orders and plants. Check your plant has been assigned to the order type and

rule.

Regards,

Sadashivan

[Former Member]

Dear Sadasivan,

Will you explain in details, we have gone through the suggested path, where there is only two defaul rules

PP1 - Production Full Mat. Settlement

PP2- Production Periodic Settlement

Actually we want to settle the production order variance as a financial variance through cost center, we don't want to settle this variance to the materail. Currently while doing the settlement, system posting the journal entry as

Inventory Account Dr.

To COGM Cr.

We want the accounting entry as

Price Variance Dr.

To COGM