Reporting Point Backflush in Repetitive Manufacturing (SAP Library

Reporting Point Backflush in Repetitive Manufacturing

Use

You can define certain operations as reporting points and create a confirmation at these reporting points.

When you create a confirmation, a backflush can be posted for all materials that were withdrawn and used between two reporting points.
When you create a confirmation, an automatic activity allocation can be generated if the corresponding settings in the repetitive manufacturing profile were made.

You specify whether the operation is a reporting point (milestone) in the control key of the operation.

Prerequisites

The system generates the reporting points when you create a product cost collector for the production version. All operations defined as milestones in the control keys are taken from the routing for detailed planning or, if this does not exist, from rate-based planning. A prerequisite is that the repetitive manufacturing indicator in the production version is selected.

You control the following in Customizing for Product Cost by Period under Run Schedule Headers ® Check Control Data for Repetitive Manufacturing Profiles:

Whether reporting points are to be used for confirmations

Whether activities should be posted

Whether the quantities for the backflush of activities are taken from the standard cost estimate for the material or from the preliminary cost estimate for the product cost collector

Whether an automatic goods receipt is generated at the last reporting point backflush

Features

The reporting point backflush results in the following:

Activities are usually posted to the production cost collector.

Backflushes are usually posted.

Actual costs based on activity confirmations and material backflushes are updated to the production cost collector.

Automatic goods receipts are usually posted.

The default values for the activities to be confirmed can be based on:

The preliminary cost estimate for the product cost collector

The standard cost estimate for the material

SAP recommends confirming on the basis of the preliminary cost estimate because you can make changes to the routing (including changes to the reporting point structure) during the validity period of a run schedule header.

Confirmation of Actual Quantities

You can change the default quantities of the material components and the activities. This enables actual quantities to be confirmed.

Confirmation of Variable Costs of Activity Types

You can specify in Customizing for Product Cost Controlling under Product Cost Planning ® Basic Settings for Costing Materials ® Define Cost Components whether the full costs in an activity type (fixed and variable costs) or only the variable costs are relevant to inventory valuation. If only the variable costs for a cost component are relevant to inventory valuation, then confirmations result in the order being debited with the variable costs only. The fixed costs remain at the cost center.

Activities

Confirmation of Activities

When activities are posted, the system generates an internal activity allocation on the basis of the following information:

The activity quantity proposed as a default is determined on the basis of the quantity structure in the current standard cost estimate for the material produced, or in the preliminary cost estimate for the product cost collector. The current routing is not exploded. You can change the proposed planned quantities if the confirmed quantities are not the same as the planned quantities.

The current price for each activity type is taken from Cost Center Accounting on the basis of a valuation variant. The valuation variant is selected through the costing variant for the actual costs. The costing variant for the actual costs is selected through the order type of the product cost collector for the plant.

Backflush

To determine what material components were used, the system explodes the current BOM of the production version on the basis of the posting date or revision level. The system backflushes the material components.

You can change the proposed material components and add others. Like other material withdrawals, the backflush uses the standard price or the moving price, depending on the setting of the price control indicator in the material’s master record.

Note

The standard cost estimate can also contain costs that are not relevant to inventory valuation, such as sales and administration costs. In cost estimates with quantity structure, these costs are shown in a separate cost component view. Such costs are not included in the target costs. This ensures that the target costs for the withdrawal of semifinished products are the same as the actual costs.

See also:

For detailed information on reporting point backflushing, refer to the document LO-PP Repetitive Manufacturing.

For information on cost component splits, see the document Product Cost Planning.