3 Replies Latest reply: Feb 9, 2007 2:23 AM by Ashish Sampat RSS

Production issues

Nivi ram
Currently Being Moderated

Hi CO-PC experts,

 

Can any one please help me with any issues you have resolved in the "CO-PC" after golive and production support phase? Any kind of issues (simple to non resolvable issues) or you know of any issues somebody faced in CO or in FI module?

 

Please.

 

Thank you,

Nivi

  • Re: Production issues
    Ashish Sampat
    Currently Being Moderated

    Hello Nivi,

     

    Most SAP installations face problem in the below areas:

    1) Dis-proportionate Goods Issue to Production Orders - MB1A - Physically the goods have been consumed, but there is no consumption entry to Production Order (movement type 261). This results in differences in physical and system inventory, requiring periodic (most likely month-end) adjustments to the inventory  - aka cycle counting (transaction MI01). This could be a huge control issue, especially from SOX perspective. Moreover, there will be huge variances posted on Production Orders (either negative or positive depending on how much of consumption postings were made. Your overall P&L entry would be same, but just that you are not consuming on Production orders, are consuming on cycle-counting

    2) Non-confirming Production Orders - CO15 - this results in no activities being captured on the Production orders

    3) Not doing Goods Receipt against Production Orders - MB1C - This would result in finished (or semi-finished) goods inventory not being shown correctly.

     

    This is more of a change management item, especially in a new implementation. The end-users need to be made aware of the pitfalls of each of these and serious focus needs to be given on completing these activities on a regular basis.

     

    Hope this helps.

    Ashish.

    • Re: Production issues
      Nivi ram
      Currently Being Moderated

      Thanks Ashish. Nice posting and explanations. Can yo please let me know any FI issues that you know in (GL,AP,AR).

       

      Thanks,

      Nivi

      • Re: Production issues
        Ashish Sampat
        Currently Being Moderated

        Hello Nivi,

         

        Thanks for the compliments.

         

        In the AR and AP areas, the primary issue will be on cleaning up old open items. Business usually decides that these are to be brought in the same way as in the legacy system. One also needs to ensure removal of duplicate vendors and customers. At the time of cutover, these open items are mapped with the help of cross-reference and loaded into SAP. Reconciliation of course will need to be done. Once funds are being recd in SAP, Cash Application will need to be done against SAP now as against legacy earlier. Most of the times, the correct invoice reference and open items will be found but in some cases, there could be confusion. Similarly, on the AP side, at times the decision is to leave the AP open items in the legacy itself and pay off from legacy with summarized JVs being made in SAP at month-end.

         

        With GL, the Opening Balance transition offset account should be cleared out.

         

        Hope this helps. Thanks.

        Ashish.

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