User Manual FI10.

05

Title: Order Settlement

Module Name Controlling Module

Controlling – Order Settlement

Production Order settlement

Overview:

Business Process Procedure Overview

There will be following steps involved from Finance side pertaining to production order:
 Calculation of Actual overhead
 Calculation of Work in Progress
 Settlement of Production order on completion

The difference between cost consumed in a production order and finished goods dispatched from production
operation to stock is treated as Work in Progress. This will be calculated every month as a month end activity. Once
the order has been completed, status of same will be changed to Technically complete after which Work in progress
calculated as of now will be reversed and difference between consumption and stock produced (i.e. variance) will be
charged to Profit & Loss as price difference.

Input - Required Fields Field Value / Comments

Production Order Number
Period

Output – Results Comments

Settlement Document

Tips and Tricks

Last changed on: Last changed by: Version: 1.0 Page:

10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 1 of 17
 User Manual FI10.05

Title: Order Settlement

Module Name Controlling Module

Procedural Steps

FI10.05.01 - Access to Actual Overhead calculation on Production Order by:

Via Menus Accounting  Controlling  Product Cost Controlling Product Cost by Order
 Period-End Closing Single Functions Overhead  Individual Processing
Via Transaction Code KGI2

From the main menu SAP Easy Access screen as shown below

Last changed on: Last changed by: Version: 1.0 Page:

10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 2 of 17
 User Manual FI10.05

Title: Order Settlement

Module Name Controlling Module

On screen “Actual Overhead Calculation: Order”, enter information in the fields as

specified in the table below:

Field Name Description R/O/C User Action and Values Comments

Order Production Order Code R
Period Overhead Period R
Fiscal Year Overhead Applicable Year R
Test Run Tick for the first time O Only for the first
time tick test run, if
output is desired
untick the same

On screen “Actual Overhead Calculation: Order Basic List”, enter information in the
fields as specified in the table below:

Last changed on: Last changed by: Version: 1.0 Page:

10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 3 of 17
 User Manual FI10.05

Title: Order Settlement

Module Name Controlling Module

CLICK

Last changed on: Last changed by: Version: 1.0 Page:

10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 4 of 17
 User Manual FI10.05

Title: Order Settlement

Module Name Controlling Module

Procedural Steps

FI10.05.02 - Access to WIP calculation on Production Order by:

Via Menus Accounting  Controlling  Product Cost Controlling Product Cost by Order
 Period-End Closing Single Functions Work in Process  Individual
Processing  Calculate
Via Transaction Code KKAX

From the main menu SAP Easy Access screen as shown below

Last changed on: Last changed by: Version: 1.0 Page:

10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 5 of 17
 User Manual FI10.05

Title: Order Settlement

Module Name Controlling Module

On screen “Calculate Work in Process: Individual Processing”, enter information in

the fields as specified in the table below:

Last changed on: Last changed by: Version: 1.0 Page:

10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 6 of 17
 User Manual FI10.05

Title: Order Settlement

Module Name Controlling Module

Field Name Description R/O/C User Action and Values Comments

Order Production Order Code R
WIP to Period WIP Calculation Period R
Fiscal Year WIP Calculation Year R
RA Version Result Analysis Version R Use always ‘0’
Log Information Information messages
Message
Test Run Tick for the first time O Only for the first
time tick test run, if
output is desired
untick the same

EXECUTE

Last changed on: Last changed by: Version: 1.0 Page:

10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 7 of 17
 User Manual FI10.05

Title: Order Settlement

Module Name Controlling Module

Procedural Steps

FI10.05.03 - Access to WIP display on Production Order by:

Via Menus Accounting  Controlling  Product Cost Controlling Product Cost by Order
 Period-End Closing Single Functions Work in Process  Individual
Processing  Display
Via Transaction Code KKAY

On screen “Display Work in Process: Individual Processing”, enter information in the

fields as specified in the table below:

Last changed on: Last changed by: Version: 1.0 Page:

10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 8 of 17
 User Manual FI10.05

Title: Order Settlement

Module Name Controlling Module

Field Name Description R/O/C User Action and Values Comments

Order Production Order Code R
WIP to Period WIP Calculation Period R
Fiscal Year WIP Calculation Year R
RA Version Result Analysis Version R Use always ‘0’
Log Information Information messages
Message
Test Run Tick for the first time O Only for the first
time tick test run, if
output is desired
untick the same

EXECUTE

Last changed on: Last changed by: Version: 1.0 Page:

10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 9 of 17
 User Manual FI10.05

Title: Order Settlement

Module Name Controlling Module

Access to Variance on Production Order by:

Via Menus Accounting  Controlling  Product Cost Controlling Product Cost by Order
 Period-End Closing Single Functions Variance  Individual Processing
Via Transaction Code KKS2

From the main menu SAP Easy Access screen as shown below

Last changed on: Last changed by: Version: 1.0 Page:

10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 10 of 17
 User Manual FI10.05

Title: Order Settlement

Module Name Controlling Module

On screen “Variance Calculation: Initial Screen”, enter information in the fields as

specified in the table below:

Last changed on: Last changed by: Version: 1.0 Page:

10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 11 of 17
 User Manual FI10.05

Title: Order Settlement

Module Name Controlling Module

Field Name Description R/O/C User Action and Values Comments

Order Production Order Code R
Period Variance Period R
Fiscal Year Year R
All target cost vsns All target costing variance R Tick
Test Run Tick for the first time O Only for the first
time tick test run, if
output is desired
untick the same

EXECUTE

Last changed on: Last changed by: Version: 1.0 Page:

10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 12 of 17
 User Manual FI10.05

Title: Order Settlement

Module Name Controlling Module

Tips & Tricks

For BSNL telecom factory scenario variance calculation is not applicable as COPA is not applicable for Telecom Factory.
Financial variance will get posted automatically during settlement.

Last changed on: Last changed by: Version: 1.0 Page:

10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 13 of 17
 User Manual FI10.05

Title: Order Settlement

Module Name Controlling Module

Procedural Steps

FI10.05.04& FI10.05.05 - Access to Settlement on Production Order by:

Via Menus Accounting  Controlling  Product Cost Controlling Product Cost by Order
 Period-End Closing Single Functions Settlement  Individual Processing
Via Transaction Code KO88

From the main menu SAP Easy Access screen as shown below

On screen “Actual Settlement: Order”, enter information in the fields as specified in

the table below:

Last changed on: Last changed by: Version: 1.0 Page:

10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 14 of 17
 User Manual FI10.05

Title: Order Settlement

Module Name Controlling Module

Field Name Description R/O/C User Action and Values Comments

Order Production Order Code R
Settlement Period Period R
Fiscal Year Year R
Posting Period Period in which financial document
will get posted
Processing Type R Enter Automatic by default
Test Run Tick for the first time O Only for the first
time tick test run, if
output is desired
untick the same

EXECUTE

Last changed on: Last changed by: Version: 1.0 Page:

10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 15 of 17
 User Manual FI10.05

Title: Order Settlement

Module Name Controlling Module

Click on

Last changed on: Last changed by: Version: 1.0 Page:

10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 16 of 17
 User Manual FI10.05

Title: Order Settlement

Module Name Controlling Module

Tips & Tricks

1. Difference between Finished good created to production order at estimated cost and actual consumption will be posted
as price difference in profit and loss account.

2. Settlement for all the order may it be production or maintenance or internal order will get settle through tcode KO88,
only receiver object will be different:

For Production Order – Material

For Rework Order – Cost Centre
For Repair Order – Cost Centre
For Prototype Production Order – Prototype Internal Order
For Prototype Internal Order – Material
For Maintenance Order – Cost Centre

Go to Display Production order screen (tcode – CO03) and check the cost analysis:

-------------------------------------------------------------End of Document----------------------------------------------------
Last changed on: Last changed by: Version: 1.0 Page:
10-Jun-10 Ravi Shankar Gupta Release: ECC 6.0 17 of 17