The picture above gives an introduction about the transactions in period-end closing for manufacturing orders, like process orders or production orders. The periodic costs — in contrary to direct costs — refer to the following:
Overhead Costs, calculated using a costing sheet
Process Costs, using the TEMPLATE allocation with business process quantities or activity quantities as sender
Revaluation of allocated activity quantities or business process quantities, if an actual price calculation has been performed in cost center accounting or activity based costing, respectively.
SAP S/4HANA Enterprise Management enables integrated cost controlling for individual co-products. Once the system allocates period costs to the order header, the costs are allocated from the order header to the order items. The system then performs WIP calculation, variance calculation, and settlement at order item level. Therefore, if you are producing co-products, all credits posting to the process order are posted to the order head, not to the order items.
Note
All debits posting to the process order with co-products — including the periodic costs — are posted on the process order head, not on the process order items. Therefore, the direct cost as well as the indirect cost — periodic costs — needs the preliminary settlement to the process order items. Then WIP, variances, and the settlement could be performed at order item level.
Period-End Closing with Co-Products
Settlement of the cost
When calculating the periodic costs, the final costing with Work in Process (WIP) and Variances could be performed. When using co-production, only the controlling method "Controlling by Order" can be used. The settlement will post the results from period-end closing to the following:
Financial Accounting and Management Accounting in Table ACDOCA
CO-PA Costing-based, which still uses its own tables
Material Ledger, which is mandatory
The Schedule Manager helps ensure that the period-end closing process is executed efficiently.