The credit of a production order takes place at the final delivery of the produced material to the warehouse (goods receipt). Here the system bases the Standard price of the produced material.

The total of the actual costs of a production order can deviate from this inventory posting to Standard cost basis (receipt at warehouse). In this case the order is balanced after the goods receipt. The reasons for these variances a different; it can be a planning variance (for example planned lot size <> yield) or a production variance (planned scrap <> actual scrap).

Therefore the production orders must be settled after the final delivery. The settlement completely credits the respective order and posts the complete variances to the account ‚profit/loss by variances‘ (price variances). The system determines this account with help of the account determination of the respective material. After the settlement the order has the balance zero.

You can settle orders for AFS materials with the same periodical processing with which you settle orders for Standard materials.

At the goods receipt posting for split valuated finished products, the system uses the Standard price of the valuation type, to which the produced SKU belongs. The remaining variances can be separated by variance categories settled to the respective general ledger account and to the profitability analysis.