Using a Production Order and Product Cost Collector

Objective

After completing this lesson, you will be able to create a production order

Production Order

The image shows a production order header in an ERP system, showing fields for material T-FL200, plant 1010, production process 100007209, and various control keys and cost settings.

When you assign a production order to a product cost collector, the status Product Cost Collector Used (PCC) will be assigned to the production order. A preliminary cost estimate can be generated for the production order, but the results cannot be saved to the production order as planned values. This function is only available to simulate the plan costs for the specific production order.

Customizing – Production Order

The image describes the SAP transaction showing default values for an order type/plant, including plant 1010, order type PP08 for standard prod. order, and costing type AD HOC ANALYSIS, NO SAVE.

Note

The customizing for production orders in only available in the customizing tree: PP - Shop Floor Control. Use transaction Use transaction OPJH to maintain production order types and use transaction OPL8 to maintain order type dependent parameters.

You must specify default rule Periodic (PP2) for the order type of the production order. The costing variant and the valuation variant specified in the order type for the production order are used for the preliminary cost estimate. This cost estimate is for information purposes only. If you do not want the system to create this cost estimate, you do not need to enter the costing variant or the valuation variant. No results analysis key is specified in the order type, because work in process (WIP) is calculated for the product cost collector based on target cost.

Create a Production Order using Product Cost Collector as Cost Object

Summary

  • Create a production order in master data for cost control by period and assign it to a product cost collectors for cost management.
  • Specify default rule Periodic (PP2) for the production order type.
  • Preliminary cost estimates simulate plan costs but cannot be saved.
  • Production orders are used for logistical processing only.
  • The product cost collector collects and analyzes costs.