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how to make zero , settment

Former Member
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Hi ,

If there is change in material price , will it create variance , means order will not get settle , is it?

For this if we revaluate material price by MR22 , is it right way? and again we will run settlement , is it right?

Regards,

MAhesh

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Answers (4)

Answers (4)

Former Member

during month end process, the price will be settled. Also contact FICO and ask the frequency of settlement run. Even if price is chnaged  and new price is updated, we can settle with new price as long as stock is in system.

Former Member
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Hi Animesh,

how during month end process (means 30 June 2013) this price will be settled , any logic behind it.

Another thing in our case settlement job runs daily , then why dot at day end , this price will get settle.

KR,

MAhesh

Former Member
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Since you job runs daily, your price will be setled with updated price immediately. No need to eait till month end.

As long as stock is in system, price update and settlement can be done.

Former Member
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Hi Animesh ,

means if I will update price (because there is change in price ) of material then it will get settled right?

KR,

Mahesh

sundaresan_velayudam
Active Contributor
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mahesh A wrote:

Hi ,

If there is change in material price , will it create variance , means order will not get settle , is it?

For this if we revaluate material price by MR22 , is it right way? and again we will run settlement , is it right?

Regards,

MAhesh

If there is change in material price , will it create variance , means order will not get settle , is it?

During settlement variance only settled

For this if we revaluate material price by MR22 , is it right way? and again we will run settlement , is it right?

no nned to revaluate the MR21, Just do the variance calculation and settlement, thats enough

Former Member
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Dear,

If there is change in material price (@ RM, SFG or FG) then definitely there will be a variance. It is possible to settle variance at the period end activities.

You can use MR21 / MR22 to input the new price/quantity for a given material. But that is not the proper way of making changes.

The standard process involves,

1: @ the beginning of the period you run standard cost estimate(usually for FGs) and release the estimate to update the price in MMR. you can run multiple cost estimates for same material for cost comparisons by changing quantity structures . once the cost estimate is released then it is fixed for that particular period and the same is valid until you do the next cost estimate and release. as per SAP only one cost estimate release is possible for one material for a given period.

2: once this happens, you can execute the regular production processes of GI, confirmations, GR etc. Mostly during these processes, it is very common that you will receive variances (at GI, or during confirmations etc.) But we always try to avoid these variance as far as possible.

3: And at the period end activities for production/process orders, we settle the variances to proper objects. (FI and to COPA for analysis purpose).

Actually your doubt looks bit confusing, can you explain what you are looking at.

Pavan

premlahar
Participant
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hi,

Settlement is done to post variance/ wip values to FI

Latest price is taken at the time of GI or GR.

Any change of material price after  GI or GR , will not effect the order values.

Prem