Difference between Full settlement & periodic settlement This question is Assumed Answered.

Kaushal Maheshwari 27-Aug-2009 07:57 What is Difference between Full settlement & periodic settlement, & how these works works on orders. Can anyone tell me that how can I check result for the same. (Kindly mention t-codes also) Regards.....Kaushal

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• Re: Difference between Full settlement & periodic settlement

suryanarayana bellamkonda 27-Aug-2009 08:19 (in response to Kaushal Maheshwari) Hi, Please find below some salient features of each os the settlement type you have asked for: 1. Periodic settlement - a) Will have Product cost collector as cost object (both REM and Descrete scenarios) b) WIP and scrap variances are based on Target costs c) Variances are recognized in the month in which they are actually incurred based on the target costs. Varainces = Total costs - GR - Target WIP d) Default rule in OPL8 should be periodic settlement 2. Full Settlement a) Manufacturing orders will be costs objects b) WIP will be at actuals. WIP = Total costs - GR value c) Varainces will be recognised only when the order is fully delivered. till that time though there are variances, they will not be recognized but will be included in WIP value. This is the key aspect of Full Settlement d) Default Rule in OPL8 would be full settlement T.codes relevant: KSV5 Run dist cycle KSU5 Run assessment cycle KSUB Run assessment cycle KEU5 Run COPA assessment cyle KKA0 Change Cutoff Period for WIP KKAS/KKAX WIP - Individual Processing KKAO WIP - Collective Processing KKS6/KKS2 Variance Calculation - Individual KKS5/KKS1 Variance Calculation - Collective KK87/KO88 Settlement - Individual CO88 Settlement - collective *For Sale Order controlling * KKA3 Execute Result Analysis - Individual KKAK Execute Result Analysis - Collective VA88 Sale Order Settlement Best Regards surya

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• Re: Difference between Full settlement & periodic settlement

Sadashivan Natarajan 27-Aug-2009 08:21 (in response to Kaushal Maheshwari) Hi, In case of production orders the settlement is done through KO88 and we can generate the report of actual line items settled through KOB1. There are some institutions who maintain full settlement every month after closing all the Production Orders wherein they dont want any thing to be in Work in Progress. But in practical terms, the periodic settlements are done wherein the amounts are settled only for those production orders which are complete and balance value is posted to WIP. Next month when these balance production order are settled in the month the above WIP is reversed. Regards, Sadashivan