General settings:

Production with sales order : From a sales order in the application component Sales , a planned order is generated automatically in the APO system. From the Product Variant Structure, entries for all planning-relevant material components and activities required in production are generated in the Rapid Planning Matrix (RPM).

Production in make-to-stock scenario : You create an APO planned order in APO. In material requirements planning, the iPPE is exploded and the components and activities are determined. In this case, requirements planning is carried out with APO but the requirements are stored directly in the planned order. Costs are analyzed for individual products at the level of the product cost collectors.

Confirmation:

You enter the confirmations for production of the order at the reporting points.

If you are using the Rapid Planning Matrix, the components for each order are determined by means of the component variant matrix duringplanning and when confirmations are entered. If you are not using the Rapid Planning Matrix, the components are determined from the APO planned order. After the data is transferred into the R/3 System, the goods issues are posted to the associated product cost collector in R/3 inventory management.

If you are using the Rapid Planning Matrix, the activities to be performed for each order are determined by means of the activity matrix analogically to the component variant matrix during planning and when confirmations are entered. The duration and resource that is used can be seen at the mode of the selected activities. The data required for cost accounting purposes (cost center/activity type or business process) are entered in the automotive system in the resource. If you are not using the Rapid Planning Matrix, the activities are determined from the APO planned order.Once the data recorded in APO are transferred to R/3, the activities are calculated in CO and posted as an internal activity allocation on the product cost collector. The activities are posted asynchronously only. For more information on the Rapid Planning Matrix, the activity matrix and the component variant matrix, refer to the SAP Library for Advanced Planning and Optimization (APO).

An entry document is created for each confirmation in the APO system. Abackflush document is generated f rom the entry documentin the Production Planning (PP) component. The withdrawals for a given material component and the activities for a given resource and for a given product cost collector are aggregated, and you post these withdrawals in each period in the APO system’s inventory management and on the product cost collector using transaction PPCGO ( Parallel Processing of Backflushes ). To this end, SAP recommends running report PPC1_CONF_GO as a scheduled background job.

In this scenario, you can enter variances directly in the confirmation:

The planned quantities are taken from an APO planned order or from the Rapid Planning Matrix, and the user can enter the corresponding actual quantities. Planned and actual quantities are transferred into R/3. In addition, there is a separate function for entering variances in the DI system.This function enables variances to be entered directly for a product cost collector without reference to a manufacturing order. This provides detailed variance information in Controlling, where the variances are valuated and analyzed with the variance calculation function.

Goods receipt:

When you have finished the product in the sales order scenario and have entered a final confirmation, the stock segment is debited with the value of the goods receipt and the product cost collector is credited accordingly. The strategy sequence for determining the valuated sales order stock differs from that in the standard Product Cost by Sales Order function.

Since no sales order cost estimate was created owing to the high production volume, the product is costed at the time of the goods receipt. This goods receipt cost estimate uses the data from the components in the backflush documents.

In the case of make-to-stock, the goods receipt is always valuated at the standard price.

The cost component split for each goods receipt cost estimateis saved to the database. Saving the itemization is not recommended due to the high data volume. You can specify in the costing variant in Customizing that the itemization is only saved in case of error.

Cancellation:

You cannot cancel a confirmation with reference to a document. To cancel a confirmation, you can post negative quantities, however.

Error handling:

It is possible that part of a posting was free of errors while other parts were not. In such cases, the part that was successfully posted is not reversed. Therefore, you have to trigger postprocessing in order to post the part that had errors. This requires that you check the message logs. For error handling in connection with valuation, you can use customer enhancement GRCOST01 to perform a plausibility check of the costing results or set a price for the goods receipt.

Period end:

In Controlling, work in process and variances are calculated for product cost collectors with quantity-based valuation. The system internally selects these quantity-based product cost collectors, which are only used in this scenario. Quantity-based valuation is a scenario that has existed since DI 4.6B. In this scenario, the product cost collector in the DI system is debited and credited with postings from APO through an interface. The management of reporting points differs significantly from the standard scenario.

At the end of the period, the work in process (WIP) and the scrap variance are determined and reported in accordance with the individual product value. Work in process in the Industry Business Solution Discrete Industries is determined based on the quantities confirmed at the reporting points. The work in process is calculated using the target quantities for components and activities corresponding to the confirmed assembly quantities. These quantities are valuated during the WIP calculation process. The component and activity quantities are valuated in accordance with the valuation variant specified in the planned costing variant of the corresponding product cost collector (WIP at target costs). The target quantities for components and activities are determined from the quantities specified in the product view of iPPE. Work in process is only calculated if a results analysis key has been entered in the affected product cost collector. In the present scenario, the results analysis key merely switches on the WIP calculation function. The Customizing settings for the results analysis key are not evaluated. Only the Customizing settings for the results analysis version are evaluated. Note that this scenario supports parallel valuation/transfer prices in the calculation of work in process and scrap.

In variance calculation the variance categories are determined on the basis of the APO confirmation. The planned quantities are determined from an APO planned order or from the Rapid Planning Matrix. You can specify the corresponding actual quantities in APO during the dialog-based confirmation. The planned and actual quantities are then transferred into the DI system. Separate recording of variances in the DI system enables variances to be assigned directly to a product cost collector without reference to a manufacturing order. This provides detailed variance information in Controlling, where the variances are valuated and analyzed with the variance calculation function.

For more information on variance calculation and variance categories, refer to Variance Calculation for Product Cost Collectors with Quantity-Based Valuation and Assembly Scrap in iPPE .

The Daily Production Costs function enables you to determine the production costs for product cost collectors used in the APO confirmation independently of the normal period-end closing process. For example, you can analyze data for specific days, weeks, or months.