6 Replies Latest reply: Oct 27, 2009 7:57 AM by Vineet Gera RSS

Settlement of Production Orders

Vineet Gera
Currently Being Moderated

Dear Gurus,

 

I need to freeze the process for settlement of production orders. What we want to do is to immediately settle most of the production orders when the last quantity goes through GR.

 

So we have put a user exit in MB31, as soon as the last quantity is delivered the program will internally call overhead, variance and settlement transaction to settle the order. The internal program will check if the order has status as DLV and will settle it.

 

Now we have scenario where due to some reasons only partial quantity is produced against the production order hence its settlement wont happen immediately. For these kind of production orders we will have to run settlement at the end of the month.

 

These production orders will have status as PDLV. Hence we need to TECO and DLV them in order to settle. These orders will be marked as TECO and DLV, at the end of the month all the prod orders with TECO or DLV status will be settled manually.

 

In both the cases how to mark the production order as closed? Can it be automated? Does the system gives any indication/status of already settled production orders? I will require a list at the end of the month of production orders with status TECO/DLV but which are not yet settled, how to get that?

 

Thanks

Geravine

  • Re: Settlement of Production Orders
    Vineet Gera
    Currently Being Moderated

    I have formulated the following steps to achieve the requirement, kindly comment:

     

    Steps for Settlement:

     

    1.     Create Production Order with multiple quantities

    2.     Keep on confirming the operations for each quantity to be produced

    3.     When last quantity goes through GR, system changes the production order status to DLV.

    a.     The above step of GR of last quantity will trigger three t-codes for overhead calculation, variance calculation and settlement of the order.

    b.     The status of the order will be changed to TECO and then to CLSD by the triggered program automatically

    4.     If production order is not to be delivered completely i.e. if quantity produced against the production order is less than the production order quantity then the automated program would not be triggered. Hence, in this case the user should follow the steps given below:

    a.     Mark the production order TECO when it is decided that there will be no more production (GR) against the given order, no goods issue will happen, no financial postings (such as operation confirmations/cancellation) will be done and the order is ready for settlement.

    b.     At the end of the month run COOIS with MRP Controller representing the division, Include Sys Status TECO and Exclude Sys Status CLSD. Get the list of production orders to be settled division wise.

    c.     Run the three t-codes manually for overhead calculation, variance calculation and settlement of the orders obtained in above step

    d.     Mark the production order CLSD (CLOSED) through COHV in mass with the same criteria as in point u2018bu2019

    e.     If a production order is not marked TECO it will not go through settlement.

  • Re: Settlement of Production Orders
    Prasobh Karunakaran
    Currently Being Moderated

    Geravine,

     

    Problem is that SAP cannot recoganise which PDLV order would no longer be produced or executed, so in this case there would be a human manual decision.

     

    Since you are saying that order which have DLV is getting settled during Final GR, then all the orders which are having PDLV status by the monthend is to be settled. You can use COOIS transaction to check the list of order which are having PDLV status, based on the human decision on this list of order, you can list the orders which need to be set with TECO status for this you can use COHV or CORM transactions to set TECO status in MASS.

     

    Hope this helps....I dont see an option availble for you to automate as there is a human decision factor involved in your process. By the way can you also please let me why you are rushing to settle the orders as soon as DLV status is acheived? Is it because you are using Moving Average Price for your order material?

     

    Regards,

    Prasobh

    • Re: Settlement of Production Orders
      Vineet Gera
      Currently Being Moderated

      You are right when you say there is a manual intervention. In my explanation above step 4 is all manual at the month end and I don't want to make it automated.

       

      As you rightly said we are using moving average for semi-finished and finished items and hence to be close to actuals we have to run settlement immediately.

       

      Thanks for reviewing the steps, kindly comment if anything doesn't seem to be perfect.

      • Re: Settlement of Production Orders
        Prasobh Karunakaran
        Currently Being Moderated

        Geravine,

         

        Frankly I did not see your second post, before I posted my first post. Your process seems to be good enough, I dont see any gap.

         

        By the way can you let us know whether you have used Userexit to trigger to custom program or any other means? Just give us a birds eye view of your development,  this information would be helpful to other forum members also.

         

        Regards,

        Prasobh

        • Re: Settlement of Production Orders
          Vineet Gera
          Currently Being Moderated

          I will be using a development which will be a copy of MB31. The program would be ZMB31. This t-code will capture relevant fields in selection screen and pass internally to MB31, MB31 screens will be shown to the user, once the MB31 is successful (SAP system changes prod ord status to dlv)  the program would further call the three t-codes of overhead, variance and settlement. It will then call bdc of the production order and mark it teco and then closed.

           

          Edited by: geravine on Oct 22, 2009 2:18 PM

          • Re: Settlement of Production Orders
            Vineet Gera
            Currently Being Moderated

            I have finalised the following process, thanks for all the response, I have also added the logic of production order status TECO and CLSD

             

            Steps for Settlement:

             

            1.     Create Production Order with multiple quantities

            2.     Keep on confirming the operations for each quantity to be produced

            3.     Month End Activity u2013 Calculation of WIP: Run transaction KKAO at plant level to calculate WIP for all the open production orders. Only the production orders having WIP and not having status DLV/TECO will be considered by the system.

            4.     When last quantity goes through GR, system changes the production order status to DLV.

            a.     The above step of GR of last quantity will trigger three t-codes for (KG12, KKS2, KO88) overhead calculation, variance calculation and settlement of the order.

            b.     The status of the order will be changed to TECO and then to CLSD by the triggered program automatically

            5.     Month End Activity u2013 Overhead, Variance and Settlement: If production order is not to be delivered completely i.e. if quantity produced against the production order is less than the production order quantity then the automated program would not be triggered. Hence, in this case the user should follow the steps given below:

            a.     Mark the production order TECO when it is decided that there will be no more production (GR) against the given order, no goods issue will happen, no financial postings (such as operation confirmations/cancellation) will be done and the order is ready for settlement.

            b.     Two options are available here, either go for settlement production order wise or go for settlement plant wise:

            i.     Production Order Wise:

            1.     At the end of the month, for each division, run COOIS with MRP Controller representing the division, Include Sys Status TECO and Exclude Sys Status CLSD. Get the list of production orders to be settled division wise.

            2.     Run the three t-codes (KGI2, KKS2 and KO88) manually for overhead calculation, variance calculation and settlement of the orders obtained in above step

            3.     Mark the production order CLSD (CLOSED) through COHV in mass with the same criteria as in point u2018b.i.1u2019

            ii.     Plant level Wise (This can be automated as a daily background job):

            1.     Run the three t-codes (CO43, KKS1 and CO88) manually for overhead calculation, variance calculation and settlement. These t-codes are at plant level and hence all the orders with status as TECO/DLV in the plant will go through the three month end activities.

            2.     Check for the message logs and do corrections if required in the listed production orders with warning/error messages.

            3.     For the plant run COHV with Include Sys Status TECO and Exclude Sys Status CLSD. Mark the production order CLSD (CLOSED) in mass.

            c.     If a production order is not marked TECO the system will not allow settlement.

             

             

            Status and their effects:

             

            TECO

             

            Purpose:

             

            TECO, Technical Completion refers to a logical ending of Production Order from a Logistical point of view. This status we generally use if:

             

            1.     The order is completely executed from the Logistics point

            2.     If the order has to end prematurely for any reason and we wanted to have all the open requirements (Like Capacity & Material reservations) to be deleted.

             

            What it does:

             

            Once the order is given a status TECO, what system does is

             

            1.     The order will not be considered for MRP planning and it will not appear in Stock Vs Requirements list (MD04)

            2.     Capacity & Material reservations against the order get deleted.

            3.     Purchase requisitions for Non stock materials & External operations get deleted.

            4.     The operations and the order header get TECO status.

             

            Follow-up after TECO status:

             

            1.     You wont be able to make any further changes in the fields of the order even in change mode.

            2.     It can still allow posting confirmations or good movement and it allows all Finance and Controlling period end activities for the order.

            3.     It will allow to revoke the TECO status

             

             

            CLSD

             

             

            Purpose:

             

            CLSD status refers to completion of all business activities for the order in terms of Logistics and Finance and Controlling. This status is generally a prerequisite for a Production order to be archived and deleted from the SAP database, also to have a control on the orders on which we do not want to have any further Cost posting. But for having a production order to CLSD status, certain Prerequisites have to be met.

             

            Prerequisites:

             

            1.     The Order must have a TECO or REL status in it.

            2.     Open Purchase requisitions & Purchase order with commitments to Production order should not exist.

            3.     There cannot be any future change records in terms of goods movement or confirmation errors in COGI.

            4.     The order balance should be 0. (i.e. Settlement should be complete)

             

             

            What is does:

             

            1.     It executes all the functions listed for TECO status if the order is in REL status.

             

            Follow-up after CLSD status:

             

            1.     Goods Movement, Confirmation and Finance & Controlling cost postings to the order is not allowed.

            2.     It will allow the order to be flagged for deletion.

            3.     It will allow revoking of CLSD.

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