Production Costing Weekly Sharing Session, Singapore

Benedict YONG, Certified SDMM, FICO

COPC201 – PP Order Settlement Process

Site Accountant

PP201.
Production If not satisfactory, reverse Complete means:
Execution calculation (same tcode, - fully delivered [DLV], or If not satisfactory, no need
menu->reverse) - technically completed [TECO] reverse, just re-run KOC4 is updated.
KOB1 after CO88

5. Run Overhead 8. Run Variance

Calculation Yes Calculation
6. Completed?
(KGI4/CO43) (KKS2/KKS1)
1. Ensure FI / CO (DLV/TECO)
/ MM period are
open No
CO Postings (CO43)
Dr PP Orders If Complete:
Cr CC Dr Variance
*Based % on PP Cr COGM
Actual Cost 7. Run WIP 9. Run
2. Ensure material
cost & activity cost is
CC will not be exact zero Calculation Settlement
OBYC: Var = [PRD-PRF]
correct (for OH Cal) (KKAX/KKAO) (CO88) Offset = [GBB-AUF/AUA]

If not Complete:
If not satisfactory, no need Dr WIP (B/S) If not satisfactory, reverse
reverse, just re-run KOC4 is updated. Cr Technical offset (P/L) calculation (same tcode,
KOB1 after CO88 * Offset GL should
3. Ensure overhead menu->reverse)
not have cost element
rates (KZS2) or
OKG8=WIPR
split rules (OKES) are
correct
10. Review PP
Orders WIP / Var
(KOC4/KOB1)
4. Ensure PP Orders
cost debit/credit are
correct (KOC4)

End