Detailing Error Handling for Calculations of Overhead, Work in Process, or Variance

Normally, the postings of overhead, WIP, and variance values are linked with business events like goods movement, activity confirmation, and technical completion of manufacturing orders. No period-end activities are needed.

However, if necessary, adjustments can be made, even if event-based production cost posting is activated. Indeed, exceptions may occur. This can primarily be due to two reasons, such as the following:

• Errors in event-based postings for order exceptions, for example, in work in progress (WIP) calculation or variance postings.
• Transactions, including journal entry postings, allocations, and settlements from other objects, which trigger postings not managed in an event-based manner.

First, you can check the event-based production cost postings and discover whether some problems are to be solved. For this, you can use the following apps:

• Order Exception Monitor – An event-based app that gives you an overview of the latest problems per type. You can then navigate from one of its cards to more detailed apps.
• Manage Product Costing Errors – An app that enables you to list event-based posting errors, identify source transaction details, simulate the impact of corrections performed, and manually delete errors.

Then, it is still possible to review event-based errors that need to be reprocessed. Therefore, you can use post-process Fiori apps, to ensure that the costs of goods manufactured are capitalized as WIP or posted as variance correctly.

Depending on the situation, you can run jobs through the following:

• Postprocess Event-Based Postings—Overhead Calculation app: This app helps detect and correct errors (such as errors due to goods movement, confirmation, data out of validity in the overhead costing sheet, or blocked postings). A new overhead calculation is run after correction.

• Postprocess Event-Based Postings - Product Costing app: This app helps detect, simulate resolution, and correct errors due to exceptions (such as postings out of the event-based posting scope) or incorrect master data/configuration. From there, you can run jobs for unsettled orders to valuate WIP or variances or reevaluate already settled orders for adjustments in the calculation.

After this last step, you can check again to ensure that there are no more errors and that all calculations have been performed. In Order Exception Monitor app, the errors have disappeared.