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Order Settlement

We are in the 'product cost by Production Order' scenario.

We have lot of orders created and released every period.

Now we are in the process of making settlements in the period end. I know that at the time of settlement, WIP & varainces are posted in Finance.

Is it mandatory that we should have calculated the WIP & variances of the orders before executing the Order settlement ? Or at the time of order settlement, WIP & Variance will automatically posted eventhough it was not calculated through KKAX/KKS2 ?

Also advise me what are the status the Orders should have for (1) WIP Calculation (2) Variance Calculation (3) Order settlement.

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    author's profile photo Former Member
    Former Member
    Posted on Jan 25, 2012 at 09:15 AM

    Hi,

    Please check below points , it may help.

    The production prder status TECO is nothing but like labellling an order to be technically complete.. You can reverse the TECO status simply.. But closing means you are trying to finish off all the formalities with an order.. SO it needs balance of the order to be zero.. You cannot arrive at zero balance until you do full delivery....

    So try to do that and settle the order..

    To settle..

    1. After Final Confirmation of Order ( Status : CNF) make GR for for order using Tcode : MIGO / MB31 so Production Order Status will be DLV.

    2. Then complete the order technically by using Tcode : CO02-- > Functions ( Menu) ---> Restrict Processing -


    > Technically Complete. You can carry out TECO for multiple Orders in Tcode : COHV (Mass Processing).

    3.Now Calculate Overheads using Tcode : KGI2 - Individual Processing

    CO43 - Collective Processing

    4.Calculate WIP using Tcode : KKAX - Individual Processing

    KKAO - Collective Processing

    5.Calculate Variance by using Tcode : KKS2 - Individual Processing

    KKS1 - Collective Processing

    6.Finally do the settlement of Order in Tcode : KO88 - Individual Processing

    CO88 - Collective Processing

    Regards,

    Ram

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    • Please see my specific requirement : "Is it mandatory that we should have calculated the WIP & variances of the orders before executing the Order settlement ? Or at the time of order settlement, WIP & Variance will automatically posted eventhough it was not calculated through KKAX/KKS2 ?"

  • Posted on Jan 25, 2012 at 09:35 AM

    hi

    u need to calculate wip(kkax) and variance(kks2) and neet to settle it after calculation these are different steps.

    production order status partially confirmed, confimed, partially delivered u can calculate wip, delivered and technically completed u can calculate variance

    order settlement, is each time when u calculate wip and variance. but all these processes are mainly carried out as month end activities

    krishna

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  • Posted on Feb 04, 2012 at 12:57 PM

    Thanks for all the inputs

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