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Nov 18, 2011 at 08:14 AM

CO Substituion for Production order variance settlement



In make to order production, Our client requirement was not to settle variances to sales order but directly to COPA.

We cannot use variance categories in settlement profile/PA transfer structure as we have transfer pricing setup and direct settlement of variances categories to COPA updates only legal view of COPA and not profit center view of COPA.

Therefore variance GL account was created as cost element in our case.

Now that client wants to settle variances to sales order for certain plants and directly to COPA in certain plants.

Therefore i tried with a CO substitution to clear sales order assignment for the variance GL and then in OKB9 i have set up PSG as default account assignment.

Now when i run the settlement, in debug mode i am able to see that the substitution works and clears the sales order assignment, but when i see the FI document posted, it still has SO assignment. No COPA document is triggered and a controlling document on sales order is posted.

Why does substitution not work for variance settlement in case of MTO process.