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Object documentationProcess Orders in Cost Object Controlling Locate this document in the navigation structure


Manufacturing order used in the process industries.


Process orders are used when materials or services are produced in specific quantities on specific dates. They enable you to plan resources, control how process orders are processed, and specify the rules for account assignment and order settlement.


A process order consists of operations. The operations are performed on primary resources. An operation is divided into phases.

A phase is an independent processing step that contains a detailed description of one stage of the manufacturing process. Phases are performed on the primary resource of the higher-level operation.

The way in which the phases are related to each other defines the sequence of the manufacturing process. Phase relationships can be sequential, parallel, or overlapping.

Multiple materials required for the execution of a specific processing step can be planned for an operation or phase.

A phase contains standard values for activities. These values serve to calculate dates, capacity requirements, and costs.

Multiple secondary resources can be planned for operations and phases in addition to the primary resource.

A phase contains a number of process instructions providing information relevant to process control.


A process order can be based on a master recipe.

A process order can be created from a planned order.

When an order is processed, the process instructions of a phase are transferred to the control recipe destination, which requires this information for process control purposes.

An inspection lot can be created when a process order is released.

Process Orders in Cost Object Controlling
Process Order Linked to Product Cost Collector

If you want to collect costs by product rather than by production order, you can specify in Customizing that you want to collect the costs on a product cost collector rather than on the process order. In this case you use the functions of Product Cost by Period. The process order is not a cost object in this case.

You define this in Customizing for Product Cost by Period under   Product Cost Collectors   Define Default Values for Order Types   or in Customizing for Product Cost by Order under   Manufacturing Orders   Define Default Values for Order Types (PP and CO)  .

If you have specified in the order type that you want to collect the costs on a product cost collector, the system creates a link to the product cost collector when you create a process order for the corresponding characteristic combination (such as material / plant / production version). The process order receives the status PCC (product cost collector). This status prevents costs from being assigned to the process order. The production process number is shown in the process order. You can maintain the following fields in the product cost collector:

  • Costing variant actual

  • Variance key

  • Results analysis key

  • Profit center

  • Business area

  • Costing sheet

  • Overhead key

In the process order, these fields are not ready for input. The valuation variant specified in the Costing variant actual of the product cost collector is used to valuate the data confirmed for the process order. The Costing variant planned is not transferred from the product cost collector but is defaulted from the order type of the process order. This costing variant creates a temporary preliminary order cost estimate which cannot be saved.

No settlement rule is generated for a process order that is linked to a product cost collector.

The link between the process order and the production process of the product cost collector can only be changed as long as no functions that result in costs have been performed for the process order. If no such functions have been performed, then for example if the production version or the BOM and routing are changed, the process order can be assigned to a different product cost collector. If costs have been incurred, the original assignment is retained even if the production version or the BOM and routing are changed.

You can view the product cost collector from within the process order.

If no product cost collector has been created to which the production order can be linked, the system issues a message.

Process orders that specify a product cost collector are ignored when process orders are processed in the period-end closing activities of Cost Object Controlling.

Process Order as Cost Object in Product Cost by Order

In Product Cost by Order, the process order is the cost object.

As a process manufacturer, you can use process orders and production orders. You can also use production orders in joint production. The use of process orders is recommended, however, because they can handle the special features of process manufacturing. (See also: Special Requirements in Joint Production).

You can create a preliminary cost estimate for a process order after releasing it. In sales-order-related production, the preliminary cost estimate of the process order can be used to calculate the standard price if you are using a valuated sales order stock.

Actual costs for process orders are collected during the production process, such as through goods issues and internal activity allocations. (See also: Actual Costs in Cost Object Controlling). You can view the actual costs and the planned costs for the production order at any time.

At the end of the period you carry out period closing for the process order, in which you can calculate work in process, for example.

You can calculate the variances for the process order either cumulatively (lot-based) or by period.

You can summarize process orders and display the costs in the information system in various ways, such as by plant.

You can link process orders to collective orders.

Reorganization of Process Orders

Process orders that you no longer need can be deleted in a reorganization run.

Reorganization of Manufacturing Orders

More Information

For detailed information on summarization, see the documentation Product Cost Controlling Information System.

For detailed information on Production Planning in the process industries, see the documentation PP-PI Production Planning - Process Industries.

You can also use process orders in conjunction with the Product Cost by Sales Order component. For more information, see the following section:

Product Cost by Sales Order

You can also use process orders in conjunction with cost object hierarchies, for example when you have costs that you cannot trace directly to particular process orders.

You can also collect the costs for process orders on a product cost collector. In this case, no costs are debited to the process order.

For more information, see the following section:

Product Cost by Period