Performing Simultaneous Costing for Production Orders

Objective

After completing this lesson, you will be able to perform simultaneous costing for a production order

Simultaneous Costing for Production Order

Production orders are usually charged with actual costs through confirmations in logistics.

The system charges actual costs to the order header as they are incurred. A cost object can be charged by internal activity allocations. This occurs automatically in confirmations. The cost objects are charged with secondary costs.

A cost object can be charged through material withdrawals. When the confirmation is entered, the cost objects are charged automatically (material backflushes, goods issues) with primary costs. In addition, the goods receipt can be posted automatically when the confirmation is entered.

Perform Simultaneous Costing for a Production Order

Summary

  • Simultaneous costing posts actual costs to a production order's header.
  • Actual costs result from confirmations, material withdrawals, and activity allocations.