Order Settlement

[former_member218048]

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.

[Former Member · Accepted solution]

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 -

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> 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

[former_member218048 · Accepted solution]

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 ?"