Production order costing in SFCProduction order costing deals with the production order costs for all items of all production types whose production orders are handled in the Shop Floor Control module. The costing functionality for order costing of standard items and customized items is the same. You can calculate:
To build up a cost structure of production
orders To build up a cost structure of production orders, you must:
Step 1. Defining a calculation office In the Production Orders (tisfc0101s000) session you can maintain an administrative work center to collect order-related costs. The value of the work in process is also recorded on the calculation office. Step 2. Deciding if the WIP must be stored per work
center In the Financial Transactions by Work Center field in the Production Orders (tisfc0101s000) session you can indicate where the work-in-process (WIP) is posted to. If the Financial Transactions by Work Center check box is selected, the work in process of materials and hours is stored on work center level. Then you can:
Step 3. Freeze estimated production order costs For comparison with the actual order costs, the estimates must be frozen. The moment of freezing is determined by the Moment Freezing Estimates field in the Production Orders (tisfc0101s000) session. Three moments are available:
Step 4. WIP transfers A WIP transfer is the posting of a certain WIP (material and hours) value from one work center to another when you complete intermediate operations. As a result, you can calculate price and efficiency variances by work center. In order to have WIP transfers, you must have a cost component structure defined because WIP transfers use the current (effective) cost component structure of the items. Step 5. Define optional price and efficiency variances LN calculates a price variance, an efficiency variance and a calculation variances during the:
With the parameters in the Shop Floor Control Parameters (tisfc0100s000) session you can determine whether LN calculates the price and efficiency results and where LN books the calculated efficiency results. When the Financial Transactions by Work Center field in the Shop Floor Control Parameters (tisfc0100s000) session is work center, the production results as well as the price and efficiency variances are calculated on work center level. For items with an actual inventory valuation method (LIFO, MAUC, FIFO, LOT COSTING) all calculated price and efficiency variances are posted to inventory where a value adjustment is done. If the items are not in stock anymore, the calculation variances are posted to the inventory accounts as a value correction. If the results are not recorded by work center, the Posting Method Efficiency Variances on Calculation Office check box and the Posting Method Price Variances to Calculation Office check box determine how to post:
The postings for materials cost are done for the following origin/financial transactions:
Step 6. Intermediate posting of production results For several reasons the production results can be calculated and posted without order closure. Some of those reasons are listed below:
| |||