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CO Production Order Variance (KKF1, KO88)

juliocesarquion
Participant
0 Kudos

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.

Regards.

Accepted Solutions (1)

Accepted Solutions (1)

carmen_garciacisneros
Participant
0 Kudos

Hello Joules,

I would like to explain how the system works concerning calculation of target costs and variances.

As long as status TECO or DLV is not set, target costs are calculated dynamically on-the-fly and are being displayed in KKBC_ORD. As soon as the variance calculation has been executed for the first time, target costs exist on the database (with value type 5 in table COSPA and COSSA). If you are now executing KKBC_ORD the system reads the target costs from the database directly.
If the variance calculation is reversed then, the system does not calculate target costs dynamically again. It always reads it from database, even if they are zero.

If the status TECO or DLV is reversed the variance calculation sets the target costs and variances to zero. This also works as designed. Since target costs and variances are zero the report of production orders should not display variances if called cumulatively and therefore I do not see why the report would show incorrect data.

I hope the information helps you.

Regards, Carmen

Answers (0)