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Use

If the reporting point structure has changed, reporting point backflushes must be converted so that the system can access current data in the following:

Conversion is made possible by the user-defined reporting point concept. Flexible reporting points enable you to calculate work in process at target costs and scrap variances even after changes have been made in the reporting point structure.

Prerequisites

You generate reporting point backflushes in repetitive manufacturing.

In the Product Cost by Period component, SAP recommends that you backflush reporting points and valuate work in process and scrap using a preliminary cost estimate for the product cost collector. Only then can you access current planning data in the case of changes in the routing and changed reporting point structures, assuring that simultaneous costing and the valuation of work in process and scrap variances are based on current values. To valuate the work in process and scrap variances using the target costs calculated in a preliminary cost estimate for a product cost collector, refer to the Implementation Guide (IMG) in Customizing for Product Cost by Period under Period-End Closing ® Work in Process ® Define Valuation Variant for Work in Process and Scrap or under Period-End Closing ® Variance Calculation ® Define Valuation Variant for Work in Process and Scrap.

Activate the change history in Production Planning (PP).

Features

The system uses the new reporting point structure to revaluate the reporting point backflushes that were entered in the current period on the basis of the old reporting point structure.

 

Conversion of Reporting Point Quantities

This graphic is explained in the accompanying text

 

The system takes the following changes into account:

The system effects this conversion by updating the preliminary cost estimate for the product cost collector.

Constraints

If you have changed the header unit of measure of a routing, you cannot convert the reporting point structure.

Example

Change to a Reporting Point Structure

Routing before

the change

 

Routing after the change

 

Operation

 

Operation

 

010

 

010

 

020

Reporting point

020

 

030

 

030

Reporting point

   

035

Reporting point

040

Reporting point

   

050

 

050

Reporting point

 

In routing A, operations 020 and 040 were originally marked as reporting points. Due to a change in the routing, reporting points 030 and 050 became reporting points, and operations 020 and 040 are no longer reporting points. The change to the reporting point structure takes place in the current period 08.

The preliminary cost estimate for the product cost collector is to be updated immediately after the change in the routing. This update converts the confirmations that took place before the change in the routing.

After the preliminary cost estimate has been updated, it is only possible to confirm on the basis of the new reporting point structure.

There are the following possible cases:

Case 1:

An operation that was not originally a reporting point is now a reporting point (see routing after change, operation 030).

When you update the preliminary cost estimate, you specify how many materials should be valuated with the value of this new reporting point (that is, how many confirmations should be assigned to this new reporting point) .

Note

Manual entry of the quantity to be confirmed at a new reporting point is only possible in online processing.

In background processing, the system assumes that all quantities at the operation that did not used to be a reporting point have not yet reached the new reporting point.

In this case, you must backflush the corresponding reporting point.

Case 2:

A new operation is added that is flagged as a reporting point (see routing after change, operation 035).

The procedure here is the same as in Case 1.

Case 3:

A reporting point is deleted (see routing after change, operation 040), or an operation that was originally a reporting point is now no longer a reporting point (see routing after change, operation 020).

The yield and scrap quantities at the reporting point are posted to the previous reporting point if the reporting point on which the confirmation is based is deleted.

If the first reporting point is deleted, this also deletes the confirmed yields and scrap quantities.

This has the following consequences:

In variance calculation, the costs for input materials withdrawn and for the activity quantities used are assigned to the variance category input quantity variance.

 

Activities

To include changes to the routing and in particular changes in the reporting point structure, update the preliminary cost estimate for the product cost collector.

When you do this, the system compares the old reporting point structure with the new reporting point structure, and converts the reporting point backflushes of the current period to reflect the new reporting point structure.

See also:

For information on calculating scrap variances, refer to the following sections:

Variance Calculation

Variance Categories

Scrap Variances

For information on the change history for routings, see the document PP Routings.

 

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