Product Costing Period End Process

March 14th, 2009 by admin Leave a reply »

Product Costing Period End Process

The period end process needs to be carried out only for real internal Order. After completion of activity /process, we needs to settle the cost to one or more receivers (cost center, Profitability segment or Assets etc)

Define settlement rules: Settlement rules can be defined at the time of creation of IO or before settlement of IO. For settlement of order we need to define distribution rules in each of senders. This Settlement rules will determines where the cost to be settled. Settlement rules will be defined by concerned Divisional Head/Dept Head.
Settlement:
After completion of activity or at period end, concerned Divisional head/Dept head will update and settle the internal order. After running the settlement the cost will be transferred to various cost objects.

SAP T code to be used

Individual Processing    KO88
Collective Processing    KO89
Stellement Rule        KOB5

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SAP Cost object controlling period end steps

This document provide the explanation for step to be followed at month end in controlling.This document shows how to do, Overhead Calculation, WIP process calculation, Variance analysis, settlement of process order
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