During period-end closing, you can calculate the actual costs which the system collects on the order header for the individual order items. This charges each co-product with its share of the actual costs. When it settles the actual costs, the system uses the equivalence numbers defined in the apportionment structure. You can define the equivalence numbers directly or based on a source structure, and therefore based on the assigned cost elements for each source structure item. To settle the actual costs, use the Preliminary Settlement for Co-Products, Rework function. The system settles the costs for the co-products using the original cost elements.
Note
You cannot post any costs directly to the process order item. All cost are credited on the order header and have to be settled to the process order items.
You make the necessary settings in Customizing for Product Cost by Order to ensure the following:
Allow settlement to an order item. You make this setting in the settlement profile. Set Order Item as valid receivers.
Allow either proportional settlement (Equivalence Number indicator) or percentage settlement (%-Settlement indicator). You make this setting in the settlement profile. The Equivalence numbers indicator is necessary for the preliminary settlement to order items.
The allocation structure contains all the cost elements with which the order header can be debited.
You must settle actual costs in the order items before you can calculate WIP and variances or settle the order.
If you have not specified an apportionment structure in the material master record or in the production version, you must enter equivalence numbers for calculation in the settlement rule of the order header. In this case, you cannot use a source structure.