Variance Settlement in Next Period for Material with Zero Quantity

[chengshiong_kwan]

Dear all Experts,

There are balances (variances) in a production order since 2 years ago.

Due to some reasons, it was not settled.

Now the client wants to settle it in current period.

But the material has been marked for deletion and there is no stock quantity remained in the system.

The client has Material Ledger activated.

How to resolve this?

I have tested to perform settlement.

System allow it.

I understand that there will be amount Not Distributed in ML.

But is there any other impacts especially in ML?

OR

Should I even consider to charge out the variances manually with a JV posting?

Debit Expenses Account with a cost center and Credit the COGM account with the above Production Order.

In your opinion, which one is a better approach?

Thank you.

Sincerely,

Sebastian

[Former Member · Accepted solution]

Hi Sebastian,

In my opinion settlement resulting in Not Distributed amounts in ML is more appropriate option.

I don't see any impacts on ML.

Regards,

Szymon

[chengshiong_kwan · Accepted solution]

Dear Szymon,

Good to know that there is no impact in ML even if there are some amount in "Not Distributed".

Thanks.

Sincerely,

Sebastian

[chengshiong_kwan]

Dear all,

JV is giving me some awkward postings which I do not want to take the risk further.

In my unit testing, I have posted a JV to zerorize the production order but I have posted the variances to an Expense account without hitting the material.

When I run settlement later, I have found that the system still pick up the order for settlement even though it is zerorized. But there is no FI doc generated during settlement.

Thanks for your input and opinions.

Sincerely,

Sebastian

[kamalkumar_biswas2]

Hi

I have some question before we go forward...

1. "I have tested to perform settlement.

System allow it."

................  I think order have difference and status is TECO/DLV  only settlement is pending and when you run the settlement in TEST mode system allows...is it ? if so may be system will through error if you run it without TEST mode. 

2. JV will not solve the issue because order will  remain as it is...only PRD a/c will be neutralized. No change in ML also

    If you see option 1 is working ( though I doubt) is the best option

kamal

[chengshiong_kwan]

Dear Kamal,

Thanks for your reply.

1. Order with TECO status and it can be settled in Update Run mode.

Material is also having Mark for Deletion flag at plant level.

Settled successfully without warning or error message and FI doc generated successfully.

2. Yes. I thought of using JV because I do not want to hit ML. But system is giving awkward postings which I will share in my next reply to all.

Thanks.

Sincerely,

Sebastian

[pavan_kumar18]

Hi,

JV posting is not advisable.

Regards,

Pavan Kumar Arvapally