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production order settlement

Former Member
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172

Dear friends,

My production order runs for 15 days. My factory calender is split by periods. So in material master MRP3 view i have defined my fiscal year variant and period indicator as "P".

My production order quantity is 1000. Out of that 1000 , i have completed 500 in period 5. The remaining 500 i have completed on period 6. Now wants to settle the same one production order to two different periods (That is period 5 and 6 ).

How to do that?

Thanks

Senthil

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
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Hi,

Good evening and greetings,

The standard business process in this type of scenario states as below

The production order is settled in period 5 by enabling the TECO button and the system would arrive at a Target Cost (which is the recalculation of the Planned Cost based on Actual Quantity) and finds the variance with that of the Actual Cost and settles with the following accounting entry for 500 PCS

Dr. Production Settlement Account (If Actual Cost > Target Cost)

Cr. Manufacturing Output Account

Dr. Manufacturing Output Account

Cr. Production Settlement Account (if Target Cost > Actual Cost)

When you run the production settlement in the period 6, the system would calculate for the balance 500 PCS only as the earlier 500 is already settled.

Please reward points if found useful

Thanking you

With kindest regards

Ramesh Padmanabhan

Former Member
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Hi Ramesh,

Thanks. Then in period 5 my production order status is "REL PCNF GMPS DEL PRC MACM SETC.

My order ststus is PCNF because i have delivered only 500 pieces out the total quantity of 1000. Even though i can able to settle by making TECO on period 5.

But i have not configured the system for variance and result analysis key.

Is it possible to settle partially in period 5?

Regards

Senthil