You manually insert individual operations at the appropriate point in the production order.

You enter a reference operation set in the existing order.

The planned costs are then recalculated. The costs are updated on the original order when the operations you inserted are confirmed.

If scrap is confirmed on a rework operation, the Cost Object Controlling component treats that operation as if the scrap had occurred on the operation that caused the rework. The costs of the components and activities are consequently not part of the scrap but go into the usual variance categories.

You create a separate production order without reference to a material.

In this case the costs for the rework are updated with the confirmation of the operations on the new order. When you settle, these costs are passed on to the original order.

When you calculate the variances, the settled costs of the rework order are shown in the original order under the usual variance categories.

If you settle the rework costs of the separate production order under a settlement cost element to the original production order, you can identify the rework costs through the settlement cost element. In the variance calculation process, the rework costs are reported as a resource-usage variance in this case.

Note that the receiving production order should not be deleted or archived until the rework order has settled to the original production order.