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Profit Center in Sales Order (Sales order item with Cost Center account assignment)

Hi Experts,

In our design for treatment of industrial product samples, we use sales order processing to handle the goods issuance. The goods issue from the subsequent delivery note is to cost center. The cost center field has been activated in the sales order item level and will be entered by the user at the point of sales order creation. Also, we have incorporated a make to order strategy where the sales order will trigger the creation of a production order for the sample material. The sample material is like any other valuated production material.

We noticed that the profit center of the sales order item has been changed to the cost center's profit center instead of the material in the sales order item. In addition to this, when we settled the production order, the variance is settled with the cost center's profit center instead of the production order material. We checked the profit center in the production order and we noticed that it is being assigned to the profit center of the production material. During settlement, a warning message is issued i.e. Profit center has been changed.

What we want is to have the profit center of production order variance settlement to follow that of the material instead of the cost center. May I know how this can be achieved?

Thank you.

TL

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  • Best Answer
    Posted on Jan 15, 2013 at 06:50 AM

    Hi Teck

    This is the standard behaviour. If you have MTO strategy, the PC from Sales order will prevail. Because you assigned a CC on the SO Item, it is passing on the same PC to subsequent activities

    I am surprised to see that the PC in Prod order is the PC from material master.. Ideally, it shouldhave been the PC of the sales order, if it is an MTO

    What you want, actually corresponds to MTS.. If you can disintegrate your SO and Prod order - i think you can achieve that

    br, Ajay M

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