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Mar 28, 2012 at 09:06 PM

CO Production Order Variance (KKF1, KO88)


Hi all,

Im working with CO production order (KKF1), in costing sheet I have assigned PP-PC1 (PP-PC Standard) and i have nothing mantained in variance key.

Actually the process I follow with this scenario is quite simple, let me explain.

I get some costs from cost center groups and take them to the order, I make GR with MB31 for whatever the production of the month is, and then I do Settlement with KO88.

In period 1 everything went good, but now, in the second period for closing I have to do some goods Issue, and then again register the production of the month (second period), bring some costs again from cost center groups (these are the costs of the production) and at the end the order settlement but now, the accounting document is not only affecting the inventory and Prod Ord Settlement GL account, it is also posting some amount to a production variance.

I know in PP the variance is the diff between the actual and the planned costs, but here we do not mantain planned, we just have actuals, can you experts please explain me how the system calculated this in my scenario considering I'm using CO prod orders order type CP01.