Name: Introducing Event-Based Production Cost Posting - SAP S/4HANA Finance
Uploaded: 2021-6-10
Duration: 452 s
Description: Learn about event-based production cost posting in SAP S/4HANA Finance.

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<div><div>Learn about event-based production cost posting in SAP S/4HANA Finance.</div></div>

Introducing Event-Based Production Cost Posting - SAP S/4HANA Finance

Hello and welcome to this micro learning video for SAP S4 Hammer Cloud for Finance. My name is Keira Peters. I'm a user assistance developer based in Galway, Ireland. Today I will give you an overview of what event-based production cost posting can do for you with the demo. I will demonstrate how WIP is posted during business goods issue and confirmation. I will show you how to view your WIP and variance. I will use the following app to demonstrate WIP and variance. Create production order, confirm production operation, event-based production costs, post goods movement, and event-based solution monitor. In the period-end closing solution, WIP invariance calculation in cost object controlling was explained by running closing transactions at period-end. But, with the event-based production cost posting solution, event-based WIP is posted during business, goods issue and confirmation, with event-based overhead included. Event-based variance is posted when the order is finally delivered or technically completed. This gives you earlier transparency and a better view of gain or loss from production. To activate event-based posting, you must use event-based overhead, event-based width and event-based variance. Let's take a look at how to do that. Let's go to the Create Production Order app to create a production order for your finished goods. Fill out your prerequisites such as material, production plant and order type. Under General, fill out your total quantity and current dates. Go to Control and confirm your production operation. The Control tab contains most of the event-based posting information, such as the Event-Based Results Analysis RA key and the Event-Based Posting Flag. The Results Analysis RA key or SEPW is the Event-Based RA key, which is assigned to the order type used in your plant. The Event-Based RA key derives the Event-Based Posting Flag automatically during order creation. You can create an event-based order only with the event-based RA key, so make sure you assign it to the order types you want to run with the event-based solution. You can only change the default event-based RA key to another event-based RA key and cannot unassign it in the order master data. Your order has now been saved. Let's go to the Confirm Production Operation app to confirm some production activities, like machine hours for example. Enter your order and operation number to confirm your orders one by one. The different quantities are filled in automatically. Your confirmation has been created. Enter your next operation. For this example, let's adjust the labour to post some input quantity variance, which we'll see later. You don't need to adjust anything here if you don't want to post any variance. If the actual is different to the planned, we will see the results in the report. After you post the activities, the actual costs will be posted from this activity confirmation, and the WIP will be posted at the same time. We'll check Check this in the Event-Based Production Costs app. I've created a custom view so we can see the variance columns in better detail. Notice that the total actual cost and total WIP are equal. Let's go to the Post Goods Movement App. Choose Goods Issue and enter your order number. We can check the overall production costs in the Event Based Production Costs app. Enter your order number and choose Go. Here you can see the WIP results from the activity confirmation. You do not need to wait until the period end to see the results. After confirming goods issue, we can see that the total actual cost and total WIP have increased and are still equal. Let's presume that our production is finished, so we go to the goods receipt order in the Post Goods Movement app. I'll put my finished line from my production to my warehouse in this final delivery. Enter your cutthroat seat and your order number, then select post. I will then check the final result and production performance in the Event Based Production Costs app by using my order number. The total WIP is clear to zero and variance compared to target costs has been calculated. Some of it comes from input quantity variance and input price variance. Input quantity variance is the difference between target costs and actual costs caused by differences between the planned and actual quantities of goods or activities consumed. It can only be calculated if both target input quantity and actual input quantity are not zero. Input quantity variance is just one category example. For a more in-depth explanation of how each variance category works, please refer to the Help Portal. Select the order number and navigate to the Event-Based Order Costs app to see a detailed view of our variance columns. Again, I've customized the view slightly so we can see them clearly. For example, in the cost components view we can see the variance for components such as setup time and personnel time. If errors occur during the event-based posting from either WIP or variance, the process will not be stopped. Instead, the errors will be shown in the Event-Based Solution Monitor app. Exceptions are happening from failed event-based WIP and variance postings, or costs from transactions that could not be handled in the event-based manner. This monitor helps you to identify anomalies, to ensure costs of goods manufactured will be capitalized as WIP. posters variants in the specified company code for standard ledgers. Now you have an overview of what event-based working process and variants can do for you.