Finish Goods With MA/S Price Control

[babarkhan_mujawar]

Hi Gurus,

We have one requirement for the our client.

Finish Goods With S Price Control

Since SAP strongly recommend to use Standard price control for the semi-finish and finish goods. We have maintained price control S in the material master for finish goods.

Now due to standard price all difference will post to price difference account after settlement of production order via KO88 or CO88. Since CO is not implemented, all price difference not getting updated in any GL account as shown in bellow screen shot(Price Difference = 113533.63).

Now client is not using KO88 OR CO88 - actual settlement for production order.

Question : How to post this price difference to particular material or particular GL account ?

Finish Goods With MA Price Control

I have created one Finish goods with price control V and price = 100.

As per my knowledge when we use moving price all price need to upload on finish goods. But i have tested one scenario with price control V and getting same GL account entries as price control S.

Please refer bellow screen shot.

Question : Why this price difference not posted to Finish Goods ?

Accounting entry getting generated with the price maintained in the material master.

Can anyone help me resolved this issue.

Thanks in Advance

Babar

[former_member183818]

http://help.sap.com/saphelp_46c/helpdata/en/90/ba67c8446711d189420000e829fbbd/content.htm

[former_member183818]

Hi Babar,

Please go though the documents

http://scn.sap.com/community/erp/manufacturing-pp/blog/2012/03/13/understanding-production-order-var...

http://scn.sap.com/community/erp/manufacturing-pp/blog/2012/03/27/understanding-production-order-var...

http://help.sap.com/saphelp_46c/helpdata/en/90/ba67c8446711d189420000e829fbbd/content.htm

[Former Member]

Hi Babar,

In material master once you use price indicator as 'S' that means your all order cost allocated to your GL.why your client is not using CO88/KO88?

How to post this price difference to particular material or particular GL account ?

Since your not implementing CO then how you post price.Pls check with your FI consultant.

You need to create separate GL for your variance amount.

Check your cost allocation structure.

Check & revert

Thanks,

[svs_sap]

Hi Babar,

How to post this price difference to particular material or particular GL account ?

When you are not using CO module and you do not want to settle the price difference for the order, then do not worry to do the settlement. Let the balance of the order be as it is for the order, and set TECO to the order to identify it as closed from production point of view so that no more goods movement possible.

Tel your client if you do not do settlement for the order then you can not set complete status CLSD to the order as balance of the order is not zero.

Why this price difference not posted to Finish Goods ?

In the second example the price difference is not due to maintain price indicator "V" it is due to not arriving at target cost for the line items you have shown so ultimately it is resulted in variances.

Do the variance calculation for the order in KKS1 with target version and check afterwards once you arrive target cost.

Check once with FI consultant if you do not have CO person.

Best regards,

Sharat

[babarkhan_mujawar]

Hi Sharat,

1. As you suggest doing TECO, that is understood. But How to post the price difference on material or G/L account as explained above.

2. Can u explain second point clearly.

Regards

Babar

[svs_sap]

Hi Babar,

Purpose of doing settlement in transaction KO88 or CO88 is to post the price difference for the order, if you do not want to do this, then you can post the difference. That's what i intended to explain you. If there any other transaction through which you can do this then please check in FI. Share this question to FI forum too.

In second point if you see target cost column is zero. Acual cost occurred. Variance is difference between target and actual. If target cost is considered then the variance is zero, hope you could have got it.

Best regards,

Sharat

[Former Member]

Hi,

As already explained by Mr Sharat, the Process is well defined and intricate. Very correctly stated that to Settle the variance, ypu first to have to settler it. Now coming to a few guidelines:

1. In Order type OPJH you have defined a Settlement Profile

2. In Order type dependent Paramaters (OPL8) you have defined in Cost Accounting tab Costing variants (planned and Actual) which helps in detrmining the cost during Planned Cost calculation and actual cost calculation

3. The Costing variants are linked with Valuation Variants (OPL1).

4. Valuation variants are also linked with Plant for valuation of goods received (Spro--> Production--> Integration--> Define Valuation of Goods received)

5. Valuation Variants determine how the variance calculation will happen in Production Order (whether it is Actual- Planned or Actual - Target etc)

6. Settlement Profile (OPKT or OKO7) provides the type of Settlement, Default values and Valid receivers (the objects which are going to receive the variance cost).... This is where the G/L accounts etc are decided

Now your Price Control Indicator in Material Master

1. If  the Produced Material is having 'S', then the variance calculated is USUALLY settled in Price Difference Account and the Price in the Material Master OR the stock value is not updated

2. If the Produced material is having 'V', the settlement of variance is USUALLY settled in Material Stock account provided you have stock of the Material. Else it goes to Price Difference account.

To explain more suppose you have a Production Order of 2 Quantity for a MAterial X (which is Finished Material) and you have done consumption of Components and done the confirmation with activity posting. The Variance now say is +100. If the initial Price in Material Master of X is 50 then stock value is 50 *2 =100

Now Before you settle this Order, you consume 01 Stock of this FG material X (say you do PGI) and you are left with 01 stock only. Now you start settlement, the ENTIRE 100 is settled on the single stock available. So the NEW PRice in Material Master of X will be = 50*1 + 100/ 1 = 150 (where 1 represents the amount of stock)

Now you do GR of this Material from another Production Order and it will happen witha a value of Rs 150 which is Incorrect!! And this is the reason SAP do not recommend using V in Finished Goods

For both the questions you have posed, Mr Sharat has explained it very clearly and that should help you in clearing your varaince in the Production Order. Note that if the Varaince is not settled and the cost balance in order is not ZERO, you won't be able to set CLSD staus in Production Order

Hope this information helps in clearing your doubt a bit. But as I already said this portion is extremely complicated and small details are having very high impact

Regards,

Bhaskar

[svs_sap]

Dear Bhaskar,

Appreciate for detailed explanation, really true sense with example and config settings. Good to understand and very clear.

Regards,

Sharat

[babarkhan_mujawar]

HI bhaskar,

Thanks for explaining in such a good way with config setting and How costing takes place.

I want to ask you Bhaskar,

1. How to load component value on FG, if i am using V in material master.

2. CO not implemented, so it is possible to do the settlement by using basic function of CO module, w/o implementing the CO. as client want that.

3. If we implementing CO and maintaint S in material master but dont want to post price difference account and they also want all price difference amount need to post on FG in S as std price also. Is it Possible???

Regards

Babar

[Former Member]

Hi,

I am not sure I understood your question well . However let me first ask a few questions:

1. How to load component value on FG, if i am using V in material master.

1. Component Value means you want to put the values of components combined in Material Master? If Yes Use Standard Cost estimate using CK11N, followed by Marking and Release. The Material Master price of FG will also get updated once you settle the variance in Production Order

2. CO not implemented, so it is possible to do the settlement by using basic function of CO module, w/o implementing the CO. as client want that.

2. If CO is not implemented at all then should I assume that Activity Prices are also not updated and hence the Material price is comprised of Component prices only? If that is the case it is possible to do settlement, provided in Settlement profile you maintain the settings properly to directly settle the cost to a G/L as decided by FI team.

3. If we implementing CO and maintaint S in material master but dont want to post price difference account and they also want all price difference amount need to post on FG in S as std price also. Is it Possible???

3. You mean that with S you want to settle it in Material Master instead of Price Difference account. Yes that is possible but again it has High Risk and lot of settings will be required by highly specialized consultants who knows the intricacies very well.

However, if my understanding is not correct, please provide details so that we can look into. Again what Mr Sharat has stated fits the bill in the current scenario

Regards,

Bhaskar