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Wednesday, January 27, 2010

How to activate level in COPA summarization level (KEDV)

Run program RKETREGN after your transport is in and refresh the data by using KEDU

Thursday, March 19, 2009

Plan vs. Target vs. Actual cost

Question

In Production order, we have plan, target and actual cost. What is the different between the three and how the variace is calculated?

This is in discrete manufacturing environment

Notes

The variance is calculated based on the different between actual and target cost. During creation of production order, the plan cost will be updated with the valid standard cost upon the creation.
The target cost is only generated when there is good receipt from production order into inventory. If the GR is done partially, the target cost will be generated partially as well.
Note: the target cost is generated using the valid / recent costing run.

Example: the following scenario is tested

Old standard cost (i.e. valid from 1st Jan 2009)
Material cost $10
Labor Cost $6
Overhead $4
Total standard cost $20

New standard cost (i.e. valid from 1st Feb 2009)
Material cost $20
Labor Cost $12
Overhead $8
Total standard cost $40

Production order is created on 5th Jan 2009 with total qty of 10. The plan cost will be generated as $200 => 10 qty * $20 old standard cost.

On 25th Jan 2009, 5 qty are complete and GR to the FG inventory. The target cost will be generated with $100 => 15 qty *20 old standard cost.

On 1st Feb the standard cost is update with $40 per piece. The target cost in production order will be updated with the new cost but not the plan cost. The plan cost will remain the same.

Upon completion of the order, the variance will be calculated from the difference between actual cost vs. target cost which in this case is already updated with the new one.

Note: during new standard cost release, the existing 5 inventory will be revalued to the new cost.

Monday, March 2, 2009

PCA and Company Code balance difference due rounding

Question

Company code and controlling area currency is the same i.e. USD. Now we have a foreign currency transaction i.e. EUR. After the posting is done, we noticed that the amount in company code ledger and profit center ledger, although both are in USD based currency, have a different balance. The difference is minimum and due to a rounding factor.

Can we have both ledger having the same balance since the both are USD based currency?

Notes

Check the setting in define additional currency (Menu: IMG > Financial Accounting > Financial Accounting Global Settings > Company Code > Multiple Currencies > Define Additional Local Currencies). If the paralel currency is define with both set as USD, change the 2nd local currency setting for source currency (Srce curr.) to '2'. This way, it always make sure that the 1st local currency (company code) will always be the same with the 2nd local currency (controlling area currency)

Tuesday, April 8, 2008

No target cost displayed in production order

Question

We have run and release costing and also have run the production order variance analysis but the target cost is still not displayed.

Notes

It could be due to different currency between company code and controlling area. Configure the 'Additional Cost Component Split' (OKYW) and the target would be shown.

How to select bank key during payment

Question:

Some vendor master have multiple bank key and bank account number, how to choose particular bank key/account during automatic payment?

Notes:

Use partner bank type to differentiate the bank key in the vendor master.

Once the bank key has beed identified with a separate bank type, you can enter the key into each individual invoices.

For example: Vendor 123456 has 2 bank account, one in Citibank and another one in DBS. In vendor master data 'payment transaction' view, the Citibank bank key is assigned with partner bank (BVTYP) code 'CITI' while the other bank is 'DBS'.

If there are 2 existing invoices and the vendor would like to get the payment for the 1st invoice in Citibank and the second in DBS, assigned the partner bank to each individual invoice.

During automatic payment (F110), SAP will read the partner bank code and make the payment accordingly.