wip in MTO at sales order or PO

[Former Member]

Hi,

Can any one please clarify on below:

At my client site we are following both MTS, MTO and ETO with min config with PS

1. In MTO Scenrio we have an option to calculate WIP at sales order level KKA3 and Production order level also KKAX.

Can you please tell me which is the acurate one and when we calculate variances (at what level) our requriment is to move the variances from PO to COPA in that case where we will calculate WIP.

How we will get the planned cost in KKA3 .

any ones reply is highly appreciated.

Thanks,

[Former Member · Accepted solution]

Hi,

Make-to-stock: if the production order has not status DLV or TECO you calculate WIP at prod. order level. Variances are calculated after the satatus DLV / TECO is reached and settled to the settlement receiver in the settlement rule.

Make-to-order: Again, if the prod. order has not the appropriate status, WIP is calculated here.

Now, the question is which scenario do you follow? If the settlement receiver of the order is the sales document position, the settlement (after status is TECO/DLV) is done to this receiver. But it can also be done as in MTS scenario but then the prod order cost are not assigned to the sales order position.

KKA3 is also needed, the production order can be finished but the sales order still can have WIP (depending on you scenario / customizing settings).

KKA3 planned cost: You get them by doing sales-order costing.

Best regards, Christian

[Former Member]

HI Sudha,

If the requirement class has the field consumption (i think) filled with cost and revenue carrying/accouing through sales order, then the sales order is the cost object. Then you have to use KKA3 and valuate WIP. Else use KKAX.

Br

Vimal

[Former Member]

Hi Vimal,

I am clear with WIP.

Can you tell me how we will calculate the vairances

thanks,

[Former Member]

Hi,

As far as i know there is no difference in variance calculation for MTS and MTO. KKS2 and KO88 should take care of production order variances.

Best Regards

Vimal

[ajaycwa1981]

Hi Sudha

One line answer to your question is if your sales order is a cost object and revenue/costs are posted to Sales Order, then WIP is to be run at SO level

Else, It is run @ PO level

br,Ajay M

[Former Member]

Hi All,

Thank you so much for the reply.

The scenario we are looking is Sales order is Cost object and with Valuated stock.

Scenario:

User has standar mat to produce say ex: cans with standard color Red if the requirement from customer is to have color say pink.

1. Creating project with two WBS elements

2. one statastical and assiging in Sales order which trigger the Production order for standard material

3. The secon WBS is real and we are setting it to Sales order.

4. At the month end if the 70% of the work is compelted

Can you please clarify on below:

1. If we calcuate WIP at SO level KKA3 then in the KKA3 screen how to get the pllaned cost of Materil (from Production order) and of the WBS (additional Cost)

2. do we need to do the Sales order cost estimate in addition to the standard cost estimate (here it will be yearly)

3. In this case how we will account for the variances of 70% work done.

4. if we do KKA3 for WIP , can we do the Variance calculation at production order level KKS2 and settlement the variances.

Thanks,

[Former Member]

Hi Ajay,

Do we have any specific config for this.

Example when we calculate the WIP at Sales order level (KKA3) and try to do at PO level (KKAX) it will populate message "item is WIP relevant at SD" and vice versa.

Kindly suggest.

Thanks,

Sudha

[ajaycwa1981]

Hi

WIP at PO makes sense if your stock is valuated.. If stock is non valuated - Then WIP at PO wont yield any results.... It would give you some info or error message that WIP calculation does not make sense

br, Ajay M

[Former Member]

Hi Ajay,

in our scenario sales order is valuated sales order only but when i try to calcuate WIP through KKAX getting the message

"No seperate WIP for calculation for this order! It belongs to a project or a SD order with RA! The message comes from RA exit no 5!

Message no. KJ000

"

Can you please clarify.

Thanks,

[Former Member]

Hi Experts,

I have gone though all the threads, can any one please update me on this.

THanks,

[venkatasatyakrishna_achan]

hi

it is better to calculate the variance at production order level and post it to copa, and the second question is it regarding calculated revenue or planned costs, because while calculating wip thru kka3 we normally check for wip and calculated revenue

[venkatasatyakrishna_achan]

where as when u talk about the scenario sales order is a cost object and not a valuated stock we can not calculate varianace, because every product is unique of its kind

[Former Member]

Hi Christian & Krishna,

Thank you so much for your reply.

We are fine with MTS Scenario.

Issues is with MTO only.

1. we have created Sales order and Production order, so at the monthe end only 70% of the qty produced and delivered to customer.

where to execute the WIP in KKAX (Production order realted) or KKA3 (sales order related).

2. At the same time we need to move the Variances on 70% of the production to COPA from Production order directly how to achieve this.

3. in KKA3 can you please explain from where the Pllaned cost get updated.

Thank you so much in advance.

Thanks,

Sudha

[Former Member]

Hi Christian & Krishna,

Thank you so much for your reply.

We are fine with MTS Scenario.

Issues is with MTO only.

1. we have created Sales order and Production order, so at the monthe end only 70% of the qty produced and delivered to customer.

where to execute the WIP in KKAX (Production order realted) or KKA3 (sales order related).

2. At the same time we need to move the Variances on 70% of the production to COPA from Production order directly how to achieve this

My question is if i calcluate WIP at sales order level then can i go with vairnaces at production order level?

3. in KKA3 can you please explain from where the Pllaned cost get updated.

Thank you so much in advance.

Thanks,

Sudha

[venkatasatyakrishna_achan]

I got u! but wat i need which is the make to order scenario u r using

sales order cost object with valuated stock

sales order cost object with non valuated stock

sales order not a cost object with valuated stock

from ur posts i understood that sales order is a cost object, if u respond me with whether the stock is valuated or not i can give u answer, because there are different levels of controls depending upon the scenario