SAP recommends the use of collective orders with automatic goods movements.
You enable goods movements between manufacturing levels in Customizing for Cost Object Controlling under Product Cost by Order ® Manufacturing Orders ®
This indicator is transferred into the order header (master data) of the orders. If there are differing order types within the collective order, the setting of the indicator of the order type of the leading order takes precedence. This indicator is transferred to all lower-level orders and overrides their original indicators.
In other words, a collective order can only contain configurable materials if such materials are delivered to a sales order stock.
Collective orders cannot contain configurable materials that are manufactured for the make-to-stock inventory instead of for a sales document item. If you create a leading order for a configured material that has no reference to a sales order item, the BOM of the configured material can contain configurable materials. These configurable materials cannot be part of a collective order.
If you are using a collective order with automatic goods movements and create a new nonvaluated phantom assembly manufactured in direct production, or a new configurable material manufactured in direct production, orders for these nonvaluated assemblies use the processing logic of a collective order without automatic goods movements. This can result in collective orders with mixed processing logic. In this case, passing on the setting of the order type of the leading order is irrelevant.
When a lower-level order in a collective order with automatic goods movements receives the status finally confirmed, the system automatically does the following:
The lower-level order is credited accordingly.
The higher-level order is debited accordingly.
You don’t need to enter this goods movement yourself – it is generated automatically at the time of final confirmation.
If you process the higher-level order immediately after final confirmation of a lower-level order, the goods receipt for the higher-level order might not be updated before you go into the change mode of the higher-level order. While you are in the change mode of an order, goods movements for that order are blocked.
For this reason it can happen that the automatic goods movement is not posted directly during final confirmation due to the blockage of the higher-level order. The lower-level order is therefore not credited and the higher-level order is not debited at this point. The goods movements that are not updated are automatically written to the postprocessing run of Logistics.
All functions that are available in Cost Object Controlling are also available for the manufacturing orders in a collective order.
This means that you can use the following functions:
You can calculate work in process at actual costs and at target costs.
Note the following if you want to calculate work in process at target costs in a collective order:
When a lower-level manufacturing order receives the status finally confirmed while no operations have been confirmed for a higher-level order, the costs incurred in the lower-level order are not included in the work in process. If operations have been confirmed in the higher-level manufacturing order, work in process is reported in the amount of the materials and activities confirmed at the operation.
Example for WIP at Target Costs in Collective Order
Based on this final confirmation, the system automatically creates a goods receipt for order 2 and a goods issue for order 1. Order 2 is credited with USD 500. In accordance with the valuation variant for simultaneous costing, order 1 is debited with USD 500.
The work in process for both orders together sums to zero.
The system calculates the work in process on the basis of the operations confirmed for order 1, operation 10. The work in process totals USD 900. The work in process is calculated as follows:
USD 400 posted actual costs for operation 10 of order 1.
USD 500 for withdrawals if the materials are assigned to operation 10 or to no operation. (If material components are not assigned to an operation, they are considered as belonging to the first operation). If material components are assigned to operations other than the first operation, they are included in the confirmation of the corresponding operation and only now included in WIP calculation at target costs.
The variances are calculated and displayed separately for each manufacturing order. Summarized analysis is also possible, for example using a summarization hierarchy or an order hierarchy in the Product Cost Controlling Information System. It is not possible to calculate or display variances for the collective order as a whole.
If you are using a nonvaluated sales order or project stock, the special requirements of these processing types should also be taken into account with collective orders with automatic goods receipts.
Nonvaluated Sales Order Stock
Nonvaluated Project Stock
A hierarchy report is available for the collective order, which shows the sum of the planned costs, target costs, and actual costs for each level of the collective order. You can access detailed reports on individual orders. If you are using collective orders with goods movements, intercompany sales are eliminated from the reports for the collective orders.
If you are usingtransfer prices with collective orders with automatic goods movements, data is updated in multiple valuation views.
Unvaluated phantom assemblies cannot be included in collective orders with automatic goods movements.
Co-products are only allowed in the leading order in a collective order.
Collective orders are not supported in repetitive manufacturing.
You cannot create collective orders for product cost collectors.
Make the settings listed under Prerequisites in Customizing.
For information on updating data in multiple valuation views, refer to the following section:Transfer Prices in Cost Object Controlling
For information on reports for collective orders, refer to the following document:
Product Cost Controlling Information SystemCollective Orders in the Information System Nonvaluated Project Stock