Thursday, October 13, 2016

Settling detailed manufacturing variances to cost based CO-PA

If you are using cost based CO-PA you may find it useful to be able to identify the detail of exactly where the cost variances are occurring. 
TIP: For Production Orders -> Make use of the PA Transfer Structure to assign settlement variance categories to CO-PA value fields. Furthermore you should leverage the relevant Cost Element groups to provide additional insight in to the origin of the variance. Let me explain how this works...

E.g. We'd like to post labor and material variances with their own values allowing us to distinguish cost variances, against the production order, for labor and materials. 
  • Create 1 row in the PA Transfer Structure for the Cost Element Group pointing to Material Costs. Assign the input quantity variance (QTYV)
  • Create 1 row in the PA Transfer Structure for the Cost Element Group pointing to Labor Costs. Assign the input quantity variance (QTYV)
  • Assign the PA Transfer Structure to the settlement profile of the order type
    • Ensure that the checkbox for settlement to CO-PA is selected
Reports in cost based CO-PA will now be able to display material and labor variances separately... Pretty simple.