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Process documentationPeriod-End Closing in Product Cost by Period Locate this document in the navigation structure

 

In Product Cost by Period, how you proceed at the end of the period depends on whether you are using a cost object hierarchy.

Prerequisites

Caution Caution

If you update quantities and values separately in Materials Management (MM), make sure that all quantity movements are valuated before you run the period-end closing transactions.

See also: Separation of Value Calculation from Goods Movements: Effects on Cost Object Controlling

End of the caution.

Process

  • If you are using only orders (product cost collectors or manufacturing orders), the period-end closing activities are performed with reference to the product cost collectors.

    You perform period-end closing for all orders in a plant.

  • If you are using cost object hierarchies, you can perform period-end closing with or without actual cost distribution in the cost object hierarchies (see: Actual Cost Distribution in Cost Object Hierarchies).

    If you distribute the actual costs to the orders assigned to the cost object hierarchy (product cost collectors or manufacturing orders), you perform the period-end close at the level of the orders assigned to the cost object hierarchy after distributing the actual costs.

    If you don't distribute the actual costs, you can perform the period-end closing activities at the level of the cost object hierarchy.