Production order /Process order settlement Public cloud

[kalprefs]

Hello ,

Please inform me about order settlement ( Production and Process ) in SAP public cloud using both Standard Price and moving average.

How we got to know whether is cost settlement is completed or not ?

Thanks in advance

[OwenLiu]

Changed tag to Finance.

[OwenLiu]

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[RMP · Accepted solution]

Dear Kalpesh,

With the public cloud, SAP has preferred event-based costing. Variance settlement is triggered automatically by DLV/TECO status update. Please use app: Display Line items : Production Accounting to see the entries where you will get to to know clearly the WIP postings and Variance postings.

[Muhammad-Humayun-FICO]

SAP Public Cloud offers 2 options to proces/production orders' settlement but the 2nd option (BEI: traditional month end activities)is deprecated (SAP will likely to lift this option's support). 

 The 1st option is the preferred one which is under 3FO Scope which also offers 2 options:

1) WIP or variance is calculated & posted as per the status (partially delivered/fully delivered) of order on goods movements & confirmations)

Pros and Cons:

No need of manual calculations of WIP & Variances & settlement at month end but the drawback is that a document is posted at every goods movement & confirmation which results in too many documents that doesn't suit where the orders' life is very short.

2) Schedule batch jobs to manually post at month end.

Pros & Cons:

A single document is posted as per the schedule job but this requires a manual effort at the month end.

Regards,

Muhammad Humayun Khan