Settlement of Orders under WIP , Changing the Cut-off Period

After WIP calculation and month end process, next we’ll see how to do the settlement of orders which are in WIP, that is work in process. Now here we have seen that in month end process if we need to calculate the finance report, we need to use a transaction code CO88 and KO88. So here in this part we’ll see that finance report that is the settlement of the orders under WIP.

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Here for settling the orders individually, we’ll use the transaction code KO88. So it will process order wise. Now for plant wise mass settlement, we need to use a transaction code CO88. So here it will provide the settlement period and the fiscal year.

So for verification purpose, we’ll run this report in test mode. So we’ll have to check the checkbox test run, and we’ll click on the execute button. So here, C088 and KO88 transactions are used for  order individually and mass settlement. Now after providing the details, we’ll click on this execute button. Once we click on the execute button, we’ll get the description. Now, to view that document’s account entry, we’ll go to transaction code FB03. Now, after that under FB03, we can get the detailed description of this document. So here we’ll have the description for this WIP, that is work in process.

 

So here this is the general ledger view for this document. Here we’ll have this line items where this account is for WIP and this account is for another line item created in WIP process. So this is how we do the order settlement which is used in work in process.

 

Changing the Cut-off Period

After the order settlements, we’ll see the last part that is changing the cut-off period. Now here we’ll have to use a transaction code KKAO. So here we’ll have to follow some process for defining the cut-off period. So first, we’ll choose Accounting, then we’ll go to Controlling. Then under that, we have Product cost controlling, then we’ll choose Cost object controlling. Now next step will be, we’ll choose the component in which we want to define the cut-off period, such as product cost by period, then we’ll go to Period and closing, then under that, we have Single functions: product cost collector or single function. Under that, we have Cost object hierarchy, where we’ll select Work in process or result analysis. There, we have Cut off period option, where we’ll get to Change, click on the change button.

After that, second point, in product cost by period and product cost by order, we’ll choose work in process, and in product cost by sales order, we’ll choose single function and result analysis. So this is how we select the path for cut-off period. Now after that, in the product cost by period, we’ll choose whether you want to calculate the WIP for product cost collectors or for objects assigned to a cost object hierarchy. Now the screen change cut-off period, that is, the initial screen will appear.

On the third step, we’ll have to enter the result analysis version for which we want to define the cut-off period. And then after providing that, we’ll have to choose the enter button. Then the screen for change in cut-off period appears. So we’ll have to press the enter button for the cut-off period, and then we’ll save the cut-off period.

So this is how we change the cut-off period by following these steps. Then the result, which we’ll get would be the system changes the cut-off period in the result analysis version. We can view the result analysis version in customizing for cost object controlling. When it calculates in work in process, the system does not override the result analysis data that process the cut-off period.

So this is how we get the result when we calculate the work in process along with the result for cut-off period. And without work in process, the result analysis version, which we get for cut-off period.

So here we’ll use the transaction code KKAO. Then for that, the initial screen of the cut-off field, we have to provide the version. So this is the version, which we have provided, and we’ll press on the enter button.

After that, we’ll have to mention the period in which we want to close and the fiscal year. So this is the period, cut-off period, and the fiscal year.  And after we save the cut-off period, we cannot run the WIP program in the period preceding the closing period. So this thing needs to be taken care of. After this, we press on the enter button. After maintaining these settings, we can get the final outcome for that cut-off period. So this is how we maintain the cut-off period for these orders.

 

Summarizing Controlling and Costing

Now here we come to an end for this session, which was on controlling and costing. Let us summarize what we have learned from this session. First we have seen how to display a bill of material using transaction code CS03, how to display routing using transaction code CA03. Then we have seen how to view the cost of a final product using transaction code CK11N, display of the production order using transaction code CS03, display the production order confirmation by using transaction code C011N and how to view a material document using transaction code MB03. Then we have seen how to get the actual cost of the production order settlement using transaction code K088, assessment cycle that is using transaction code KSU5, under which we have created an assessment cycle and saved that cycle. Then we have seen how to execute that created assessment cycle using that same transaction code.

We have also seen what is a month end process in WIP calculation, that is work in process. Here we have used a transaction code KKAO.  Then to check the finance report, that is the settlement of the orders, which we have created in WIP, we’ll use the transaction code CO88/MO88. That is CO88 for individual processing and KO88 for mass processing. And last, we have seen cutoff period using transaction code KKAO. So these were the topics, which we have learned and explored under controlling and costing session.