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Settlement Error in production Orders

Former Member
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Hi experts

1.we are following sale Order Costing & we are using Price Control-V in our Semifinished & Fg materials,

During Settlment we are getting error below

Material Price in Negative.how to solve this error

2.second Error we are getting if Consumption is done against Production Orderi.e 261(Movment) & no 101(production) movment.

how to solve this error

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
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I checked the production Order & analysed 261 & 101 Movments, here in PO the value of GR is greater than the value of GI over a period of time.

how to resolve such issue

Former Member
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Right now your production order contains a negative balance. I assume that there is no stock left or not enough stock for this material (that's why the system give negative moving).

So right now we have to bring the balance up or move the current stock value up to make positive moving avg again. Given that your GI and GR posting is all correct.

Also, your offset account against GR is credited too much and it should be debited. Your FG inventory value is too high and if you already used it in sales, your COGS is too high too.

So we need to debit offset account against GR and credit COGS. By debiting offset account, it will bring your balance in production order from negative to zero.

Easier said than done. I don't know your design in product costing. However, if you use some function call revaluation of activity price, then I would suggest that you do FI accounting -> Dr. Offset account (CO object : Cost center) Cr. COGS (CO Object : Profit segment - PA). Then you tie the offset account to activity type in activity type planning. Process the revaluation then the costs from the debit will be transferred to production order, thus bring the balance to zero.

Then you can settle. Please note that this is really depends on your design of product costing. I would strongly recommend you to create the test case in QA system, test it out before you implement in Production System.

This is not the only way though. It is quite tricky to solve this issue but remember that you should bring the balance in production order to zero or positive value.

former_member196530
Active Contributor
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Dear ,

1.In SAP standrad , any semi-finished or finished material should have Price Controller -S and Valution Class-7920 .I do not know why are you using PC-V ? .I suggest you to go to MM02-Change the Price Controller for SFG and FG .

2.You can carry out the Production Order Settlement for below stage :

1.When a Production Order Goods Issue (GMPS- GI-261) done against reservation and final issue indicator has been marked.(MIGO-261, MB31-261)

2.When a Production Order has all the operation confirmed or partially confirmed ( PCNF-CNF-CO11N)

3.When a Production Order status as DLV/PDLV-MIGO-101 done and material is in stock .

4.When a Production Order has set to Technically Complete ( cohv/CO02-Function -restrict processing -TECO )

5.When a Production Order has set to Close for farther procssing (cohv/CO02-Function -restrict processing -CLOSE)

6.WIP should be checked -KKAX, KKAY

7.Check COGI , COFC,COF1 error before you are proceeding for settlement of that order .

8.Check Order balance in KOB1,

Based on the above information , kidnly check your production order status and proceed accrodingly .

Hope this is clear

regards

JH

Former Member
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Hi

I wanted to clear the Reason if we maintain Price control-V for SFG & do sale Order Costing,

but what are the Reasonsfor Material Price going Negative is it because of Extra Consumptions or any Other Reason

Former Member
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Hi,

If the value of GI is greater than the value of GR over a period of time, then the MAP value will reduce & turn negative. So study thru' the movements & the values attached to it & you will get a clue.

SAP recommendation for in-house made parts to have price control as 'S' not 'V'.

Regards,

Vivek

Former Member
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Can you give us the detailed of material movement and the value of FG production orders? What are the variance amount in production orders in question? These will be very helpful to analyse the cause.

How the material value is calculated during first goods receipt of finished products to Sales Order? Does it use planned value in production orders? If the second GRs exist, it will always use the moving avg price in the first GR. If you have two production orders, the second production orders will be credited incorrectly. If the production costs that debit to production order also very low then you might have a large amount of variance credit (balance in production order is negative). If this variance credit is too large, it can cause the negative price in mvg. price.

Normally, according to SAP recommendations, we should set the manufactured products to standard price, not moving average. Since there will be a chance that moving avg price is calculated incorrectly.

Solutions: If you fully analyse the material movements and found out some incorrect value. You may need to reverse the transaction. Change the moving avg price via MR21 of sales order segment. Reverse the variance calc., and re-settle production order. In the long run, I would suggest you to consider very hard to move to standard costs.

Hope it helps.

mohan_madaiah
Active Participant
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Hi sand,

For the semi finished and finished materisl please maintain price control indicate "S" for raw materials maintain "price control indicate V",

This slove your issue,

thanks

Mohan M