Collective Orders with Automatic Goods Movements 
Use
Note
SAP recommends the use of collective orders with automatic goods movements.
Prerequisites
For the system to generate a collective order, at least one of the semifinished products used in the finished product must have a special procurement key for direct production. You specify the special procurement key in the MRP view in the material master record.
The standard processing logic for collective orders requires goods movements between manufacturing levels.
You enable goods movements between manufacturing levels in Customizing for
Cost Object Controlling
under
Product Cost by Order
Manufacturing Orders
Check Order Types for Manufacturing Orders
with the
Coll.ord.process
. indicator.
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.
It is not allowed to have materials at lower-level manufacturing levels in a collective order if those materials are configurable but are not linked to a sales order item.
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.
Note
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.
Features
When a lower-level order in a collective order with automatic goods movements receives the status finally confirmed , the system automatically does the following:
Creates a goods receipt for the lower-level order
The lower-level order is credited accordingly.
Creates a goods issue for the higher-level order
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.
Note
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:
The same valuation of materials that are produced with and without a collective order. The materials in a collective order with goods movements can be valuated at standard cost if you are using a make-to-stock inventory, a valuated sales order stock, or a valuated project stock. You can use the Actual Costing / Material Ledger component (CO-PC-ACT) to valuate the materials with a period price.
Calculation and settlement of work in process corresponding to the standard procedure in the period-end closing activities in Cost Object Controlling .
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
Example for WIP at Target Costs in Collective Order
Prerequisites:
One collective order consists of the leading order no. 1 and lower-level order no. 2. You want to valuate the work in process at target costs.
The leading order (no. 1) is to manufacture 10 units of material FERT A. The lower-level order is to manufacture 10 units of material HALB B.
Both orders are confirmed transaction-based.
The price control indicators of FERT A and HALB B are set to S (standard price). The standard price of FERT A is USD 100. The standard price of HALB B is USD 50.
Process flow:
Actual costs of USD 550 are incurred for order 2.
Order 2 receives the status finally confirmed .
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.
No confirmation is made for order 1 at this point.
The period-end closing activities are performed. The work in process is valuated at target costs.
The work in process for both orders together sums to zero.
In the next period operation 10 is confirmed for order 1. Based on this confirmation, the system posts an actual cost of USD 400. There are no variances between the target and the actual for this operation.
The period-end closing activities are performed.
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.
Calculation of cumulative or periodic variances in accordance with the standard procedure in the period-end closing activities in Cost Object Controlling for all orders in a collective order that deliver to the normal make-to-stock inventory or to the valuated sales order stock
Note
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.
Cumulative or periodic settlement of the orders in the collective order
Settlement of the variances to Profitability Analysis (CO-PA)
Valuation at transfer prices
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.
See also:
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.
Transfer Prices
If you are using transfer prices with collective orders with automatic goods movements, data is updated in multiple valuation views.
Constraints
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.
Activities
Make the settings listed under Prerequisites in Customizing.
See also:
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 System