Function documentationReorganization of WIP and SD Objects

 

You can use the reorganization to change the profit center assignments in the master data of the following object types:

  • Sales document items (that is, items from sales orders, requests, offers, scheduling agreements, and contracts) for sales documents within a company code as well as for cross-company code sales documents,

  • WBS elements

  • Cost objects,

  • Production orders,

  • Product cost collectors,

  • Process orders,

  • Internal orders,

  • Maintenance orders,

  • Accrual orders,

  • QM orders,

  • Networks, and

  • Network activities

Furthermore, you can transfer the affected balances from the old profit center to the new profit center in new General Ledger Accounting.

Constraints

The following constraint applies:

Sales documents that use the Revenue Recognition function cannot be reorganized.

Integration

The reorganization of work in process (WIP) and objects from Sales and Distribution (SD objects) forms part of the profit center reorganization. The system considers relationships to other objects of the derivation hierarchy that have imparted or inherited their profit center assignment.

Example Example

A production order has inherited its profit center from the material to be manufactured. If the material is reorganized, the production order is included automatically in the reorganization. If purchase orders or invoices with a reference to the production order have the same profit center, they are reorganized as well.

End of the example.

The reorganization of WIP objects and SD objects is not integrated with CRM.

Prerequisites

The following prerequisites must be met:

  • You have ensured that the prerequisites for the reorganization are met and you have made the general Customizing settings for the reorganization.

    If you want to define specific restrictions for WIP and SD object types in the reorganization plan, you have specified restriction characteristics accordingly in Customizing for the Reorganization under Start of the navigation path Basic Settings Next navigation step Restriction Characteristics Next navigation step Specify Restriction Characteristics for Reorganization Object Type End of the navigation path.

    For more information, see Prerequisites and Customizing for the Reorganization.

  • You have ensured that the following specific prerequisites for WIP and SD objects have been met.

    • For the cost objects to be reorganized (that is, for all objects that may have work in process), you need to have performed all period-end closing activities completely and closed them for the prior period before you close that prior period. In particular, you need to have determined the work in process and settled it to FI.

      Caution Caution

      After the reorganization, settlements in the prior period (or earlier periods) can no longer be reversed.

      End of the caution.

    • Note:

      Caution Caution

      Between changing the assignment in the master data (reassignment) and transferring the balances, you must not settle any accrual data to FI for cost objects; otherwise, the correct calculation of the balances to be transferred cannot be guaranteed.

      For this reason, settle the prior period before starting the reorganization, and only settle the reorganization period once the reorganization has been completed.

      End of the caution.

    • The prerequisite for the correct calculation of WIP balances is that no settlements have yet been made to the reorganization period or any subsequent periods. If such settlements have already been made, they need to be reversed before the reorganization starts.

    • Before the reassignment, you need to have transferred all billing documents to Financial Accounting.

    • You can specify that specific sales documents are always included in the reorganization; the system then selects the sales documents by status and period. You have made any necessary settings in Customizing for the Reorganization under Start of the navigation path Basic Settings Next navigation step Specify Periods for Sales Document Selection End of the navigation path.

    • If you want to reorganize cross-company code sales documents, you need to have ensured that the Profit Center of the Billing Document (VBAP-PCTRF) field is filled in the sales document.

Features

Generation of the Object Lists

The system selects all objects that are assigned to a profit center to be reorganized. In the reorganization plan, you can choose user-definable selection criteria to restrict the number of objects.

On the basis of the relationships between the object types, the system tries to determine the new profit center automatically.

Example Example

If a material needs to be reorganized, production orders that have inherited their profit center from that material automatically receive the same new profit center as the material during the reorganization.

End of the example.

If the system cannot determine the new profit center automatically, an object owner has to decide which profit center needs to be assigned to the cost object.

Reassignment

In the master data of the objects, the system makes the reassignment to the new profit center. This also happens when the transactions for master data maintenance reject a change in profit center on account of postings having already been made to the objects.

If a settlement rule for a profitability segment is defined for the object, the system also adjusts the rule accordingly. The system determines a new profitability segment that contains the new profit center as the value for the Profit Center characteristic. The validity of the old settlement rule is restricted to the end of the prior period. From the reorganization period, a new settlement rule is created for the profitability segment. (For this, only actual settlement rules are considered, not plan settlement rules). If a sales document item has a profitability segment assignment, this assignment is also adjusted accordingly.

The reorganization in SD changes the profit center in sales documents but not in billing documents because they are source documents. The system ensures that follow-on processes such as credit memos apply the new profit centers after the reorganization.

Cross-company code sales documents can use substitution to derive for external billing documents a different profit center to that used for intercompany billing. For the reorganization of the profit center of the billing documents, a separate object type - Sales Document (Cross-Company) - is used. When the profit center of the billing documents has determined a substitution, you have to adjust it in line with your reorganization intentions. When the object list is generated, the substitution is run to automatically propose the new profit center. During the reassignment, the profit center of the billing documents in the sales document is adjusted. If the same sales document is also reorganized in accordance with the "normal" profit center, this is performed in the usual way using the object type Sales Document Item.

Transferring Balances

The system determines the balances belonging to the objects and transfers them to the new profit center in new General Ledger Accounting.

The system transfers accrual data that were settled to Financial Accounting on the basis of the posting rules for the settlement of work in process (transaction OKG8) - for example, work in process or provisions for uncovered costs. For more information on the posting rules, see the Implementation Guide for Product Cost Controlling under Start of the navigation path Cost Object Controlling Next navigation step Product Cost by Period Next navigation step Work in Process Next navigation step Define Posting Rules for Settling Work in Process End of the navigation path.

Transfer postings are only made to balance sheet accounts; P&L accounts are not reorganized.

Activities

As reorganization manager, you proceed as follows:

  1. Generate the object lists for objects of the first hierarchy level. These are objects for which the system cannot determine the new profit center assignment automatically.

    For this, the system selects all objects that are assigned to a profit center to be reorganized and meet the selection criteria.

    Note Note

    Objects for which the system is able to automatically determine the new profit center assignment are not yet selected in this step.

    End of the note.

  2. Assign the objects found to an object owner.

    The object owner then makes a decision regarding the new profit center assignment.

  3. Start the reassignment of the objects.

    The system changes the profit center in the master data of the objects. In this step, the system automatically selects any cost objects for which the new profit center assignment can be derived from higher-level objects.

  4. Start the transfer of the balances.

    For each object, the system determines the accrual data that has been settled to Financial Accounting. Values on balance sheet accounts are transferred to the new profit center.

Where necessary, repeat these steps to reorganize your objects successively or to include new objects.

Example Example

You have already generated an object list for sales order items. In the meantime, new sales orders have been created. In this case, generate the object list again.

End of the example.

Example

Example 1

The material PUMP 1 is assigned to profit center PCA. Production order 4711 for the material PUMP 1 has inherited the assignment to profit center PCA from the material. As of April 1, a part of the materials should no longer be assigned to profit center PCA but instead to profit center PCB. You have performed period-end closing for the month of March, determined work in process for order 4711, and settled to Financial Accounting. You have created a reorganization plan and generated the object list for materials; the object owner for the material PUMP 1 has decided that this material needs to be assigned to profit center PCB. You have performed the reassignment for this material but not yet for the dependent objects.

You now proceed as follows:

  1. In the Reassignment step, select the object type Production Order beneath the Material node in the reorganization plan and start the reassignment.

    The system finds order 4711 automatically and reassigns it to profit center PCB.

  2. In the Transfer Posting step, select the Production Order line and start the transfer posting.

    The system determines the work in process on order 4711 and, in new General Ledger Accounting, transfers it from PCA to PCB on the balance sheet account determined using the posting rules for work in process.

Example 2

Sales order 1234 has item 10 with which material PUMP 3 is ordered, and this material belongs to profit center PCC. However, when the sales order was created, the profit center of the sales order item was overwritten manually with profit center PCA. Since the profit center of the sales order item is different from the profit center of the material, the system cannot determine the new profit center assignment automatically.

If objects for profit center PCA need to be reorganized, sales order item 1234 / 10 is found by the system during the step Generation of Object List; an object owner must decide which profit center needs to be assigned before the steps Reassignment and Transfer Posting can then be performed.