5 Replies Latest reply: Mar 5, 2012 10:20 AM by tarachand bhapkar RSS

Production Order GR with Planned Price

Vishal Kadia
Currently Being Moderated

Dear All,

 

We are using following steps for production order=

 

1) Create BOM, for Semifinished material with Price control = "S"

2) Create Roting, with all Keys PP01, PP02 and PP03 with Material allocation to respective steps

3) Standard Cost Estimation using CK11N and CK24

4) Create Production order using CO10 with Material and WBS Element.

5) Material issue against Reservation. But the material may be changed after releasing prodction order first time. And Actual issue for the BOM material may be more or less in qty.

6) Final confirmation with completion of last phase confirmation of production order.

7) Production Order TECO

8) Prodction Order Settlement using KO88

 

Now my problem is while I am doing final confirmation the GR done is with Planned price (Based on BOM) + Subcontracting charges which it is set with production order while releasing it for the first time.

 

Kindly tell me is the system behaviour is correct or wrong?

 

We are expecting that GR should happen with the actual material issue price + Subcontracting charges only.

 

Please reply.

 

Thanks & Regards,

 

Vishal Kadia

  • Re: Production Order GR with Planned Price
    tarachand bhapkar
    Currently Being Moderated

    Vishal,

     

    Final GR should be with standard price maintioned in material master.

    As per STD SAP practice when you create production order system creates plan cost as per std BOM and routing (std prices for FG/SFG and variable price for RAW and activity price mentioned in KP26) When you do confirmation and GI GR, system calculate actual cost for production order (Actual goods consumption, aivities and overheads) hence plan VS actual varience is posted at the time of settelment.

     

    Hence std price mentioned in material master for FG/SFG is revised as per client revision cycle by considering varience for specific periods.

     

    Tara

    • Re: Production Order GR with Planned Price
      Vishal Kadia
      Currently Being Moderated

      Tara,

       

      Than how we can get the GR with actual price of Material, Activities and Overheads.

       

      Please suggest.

       

      Best Regards,

       

      Vishal Kadia

      • Re: Production Order GR with Planned Price
        tarachand bhapkar
        Currently Being Moderated

        Vishal,

         

        There are only two price controls in SAP, either "S"- Standard Price or "V"- Variable price, form FI prospects.You can do GR with these price controlls only. when you do GR system will update FI entries.(post material doc and accounting doc)

         

        Plan and actual cost for production order calculated in Controlling, and varience is settled against GL account. From that you need to revise yor standard price for next period price control. You can't do GR with actual price. You can do the sales with actual price+profit margin etc.

         

        Tara

         

        Edited by: tara  bhapkar on Mar 5, 2012 9:09 AM

      • Re: Production Order GR with Planned Price
        tarachand bhapkar
        Currently Being Moderated

        Vishal,

         

        This is for your information.

         

        If you have production order of 1 EA- Starnadar Price =10 rs

         

        Raw material cost=5

        Activity Cost=2

        Overhead Cost=2

         

        So COM=9 rs

         

        Suppose after production order creation plan cost is 9 rs, hence after confirmation there is no varience (plan vs actual) so actual cost is also the same 9 rs.

         

        Now as you said if system will go for GR against actual cost, that will post in cost of good mfg account at the time of GR.

        As per std SAP after GR also you can issue the material to that order, hence if you will go for more goods issue of new material against that order (unplanned issue) of rs 5 for the same order then the actual cost will again change (recalculated), but for that oredr material is allready GR with actual cost, then you will not able settle the cost of newwly issued material on that order.

         

        So whatever the plan and acual cost GR will be done against std price maintioned in material master ( 10 rs)

         

        This is my understanding.

        Hopes that will clear your dought.

         

        Tara

  • Re: Production Order GR with Planned Price
    Devendra F
    Currently Being Moderated

    Hi,

    pl. check order cost analysis as following CO02Menu barGOTO--Costs-Analysis

     

    into Order cost details cost is pick up from Whatever setting mention into OPL1,

    with valuation variant, There are different options mention like as valuation price according to price control into material master,

    standar price ,moving average price.

    Generally if your setting into material master for price control is ok, then select option as valuation price according to price control in material master.

     

    System is behaves according to such setting.

    pl. verify & revert back.

     

    Regards,

     

    Devendra

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