Relevance: MTO production/Excess production and then transfer
Interest: FI-MM integration and impact on CO
Demonstration: Movement type to be used, relevant transactions and configuration required to allow the transactions to be posted to GL account with acceptable FSG.
Case 1- If transfer posting would happen between one sale order to another sale order and the sale orders are having different production orders connected/linked/assigned to them, the production difference account gets hit with the differential amount of sale order cost estimates. For example: Sale order # 1cost = Inr 120 and Sale order # 2 cost = Inr 123; the differential amount of Inr 3 will be posted to GL account assigned to PRD account key, at the time of 413+E movement.
Case 2-If transfer posting happen within a sale order that has multiple line items, which have costed at different amounts, then the differential amount[citing Case 1 for example purpose] will go and sit in GL account assigned to account key AUM, at the time of stock transfer between line items.
Master data to be maintained:
GL account, assigned to AUM account key, should not have sale order as mandatory field at FSG. Reason being, 413+E movement type’s field selections is having following fields as mandatory:
UMBAR Valuation Type Trfr Pstg
UMCHA Batch Trfr Pstg
UMLGO Receiving stor. loc.
This is native setting of SAP and shouldn’t be changed. So, we have used a GL account[assigned to general modifier AUM + valuation class combination], which is having G030 as FSG.
Case 2 is demonstrated in this article.
Figure 1: Sale order under discussion
Business scenario – Sale order item 10 and 20, both are having YDR1/024CNOCC001 as one of the components. This can be seen from the configuration parameter of the sale order line items.
Item # 10 = KFFBYCTN0241O
Item # 20 = KFFPYCTN0241O
We need to understand why account modifier AUM gets the hit during transfer posting? This is because the cost estimate of the material/component, being transferred is having different cost estimates for different line items of the sale order.
Figure 2: Sale order cost for YDR1/024CNOCC001, where final material is KFFBYCTN0241O
If we see the cost of 1 unit[in this case 1 KG] of YDR1/024CNOCC001 is Inr 242.56.
Figure 3: Unit cost of material to be transferred for the line items from where it shall be transferred
Similarly, cost of YDR1/024CNOCC001 can be found for sale order line item 2. The cost is Inr 259.55.
Difference in cost = Inr 259.55-Inr 242.56 = Inr 16.99. But this difference is not the one to be posted against GL.
Since the stock can only be transferred after production against sale order, hence, the value difference from EBEW [standard price]table will be considered for differential posting.
Figure 4: Table view of EBEW – standard price
Figure 5: Calculation value difference and posting in FI
As the GL account is assigned to AUM, this account do require an account assignment element. In our case, we have made cost center 1001FDE000 as default account assignment in OKB9 setting.
The accounting document generated out of transfer posting is as below –
GL account Description Amount Profit center Cost center Txn.
331000 INVENTORY – SEMI FIN 1,249.45- INR 1024FKN000 BSX
331000 INVENTORY – SEMI FIN 1,297.75 INR 1024FKN000 BSX
593050 CHANGE IN STOCK WAST 48.30- INR 1001FDE000 1001SP001 AUM
Conclusion: For the very first time I’ve heard abut this business requirement of having excess production get detached from original sale order and move to another/new sale order, I thought this cannot be met. And, question came to my mind is why is it required, at all ! Since it is sale order related production, why is this excess production required? But, then I came to an understanding this requirement as acceptable business scenario in textile industry and this can be achieved. The above transactions show how the transactions are posted and where and to get it posted in system what are the configurations required.