Purpose
You can cost products by order on the basis of various orders:
You can link production orders with a quantity structure and process orders into collective orders.
Process Flow
You calculate the planned costs of the material. You do this by creating a cost estimate with a quantity structure or a cost estimate without a quantity structure.
You cannot carry out functions of Production Planning (such as scheduling or capacity planning) for this order.
You can post actual costs on the order when it is released. Actual costs arise when materials are withdrawn for the order or when activities are performed. You can look at the results of simultaneous costing at any time.
As soon as you enter a goods receipt, costs are passed on to stock. This goods movement is valued with a preliminary price (normally the standard price). The order is credited.
In the case of process orders with co-products, the order item rather than the order is credited.
You perform the following activities at the end of the period:
The remaining costs for delivered orders are settled at the end of the production process. The price control indicator in the material master record of the material being produced determines whether these costs are written to a material stock account or a price difference account.
In joint production settlement requires two steps: The following happens during settlement:
When the production order has been completely settled, you can delete it or archive it.