BUSINESS PROCESS PROCEDURE
Title: Settle Production Orders
Accelerated SAP Production Planning - collectively
Organization/Area
EUP Category:
File Name: CO88 Release: R/3 4.6C
Responsibility: Dennis Production Controller Status:
Jollicoeur
Overview
Trigger:
In SAP talk, The Enterprise needs to settle an internal order to a receiver. Production orders are created.
Labor, and Overhead, materials need to be settled, i.e., moved to the proper accounts.
Another way of phrasing things is that Once a Production Order has been completed (goods issue, goods
receipt, confirmation) it must be “settled” in order to collect the actual cost of production.
When a production order is settled, the actual costs incurred for the order are settled to one or more
cost-objects (to the account for the material produced or to a sales order). Offsetting entries are
automatically generated to credit the order.
If the costs for the production order are settled to a material account, the order is credited each time
material is delivered to stock. The material stock account is debited accordingly. If the costs for the
production order are settled to another receiver (for example to a sales order), the order is credited
automatically at the time of settlement. The receiver cost-objects are debited accordingly.
The debit posting remains on the order and can be displayed even after the costs have been settled.
The settled costs are updated in the corresponding receiver cost-object and can be displayed in
reporting.
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BUSINESS PROCESS PROCEDURE
Title: Settle Production Orders
Accelerated SAP Production Planning - collectively
Organization/Area
EUP Category:
File Name: CO88 Release: R/3 4.6C
Responsibility: Dennis Production Controller Status:
Jollicoeur
Accounting – Controlling – Product Cost Controlling – Cost Object Controlling – Product Cost by Order –
Period End Closing – Single functions – Settlement – CO88 Collective processing
Click CO88:
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BUSINESS PROCESS PROCEDURE
Title: Settle Production Orders
Accelerated SAP Production Planning - collectively
Organization/Area
EUP Category:
File Name: CO88 Release: R/3 4.6C
Responsibility: Dennis Production Controller Status:
Jollicoeur
Field Name Description R/O/C User Action and Values Comments
Plant The plant from which orders are R Enter the plant for which you are
chosen from performing the settlement.
With If Production orders need to be O select if this needs to be included in the
production included collective processing
orders
With If Production Cost Collectors need to O select if this needs to be included in the
production cost be included collective processing
collectors
With process If Process orders need to be included select if this needs to be included in the
orders O collective processing
with QM orders If QM orders need to be included O select if this needs to be included in the
collective processing
With orders for If Orders for Projects/Networks need O select if this needs to be included in the
projects/networ to be included collective processing
ks
With orders for If Orders for cost objects need to be O select if this needs to be included in the
cost objects included collective processing
Parameters Section
Settlement settlement period R enter the period
Period
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BUSINESS PROCESS PROCEDURE
Title: Settle Production Orders
Accelerated SAP Production Planning - collectively
Organization/Area
EUP Category:
File Name: CO88 Release: R/3 4.6C
Responsibility: Dennis Production Controller Status:
Jollicoeur
Fiscal Year Fiscal year R Enter fiscal year
Processing Type of processing R Select processing type
type
Posting Period The settlement results are posted in R Enter in a posting period
the posting period. The posting period
can be longer than, or the same as the
settlement period, but it must be within
the specified fiscal year. The
settlement period is the same as the
posting period, unless you make an
entry stating otherwise.
Processing Options Section
Background Runs in background to avoid O Select to activate
processing overloading the system
Test Run Allows program to run without O Select to activate
changing existing data
Detail list Creates a two level log O Select to activate
Check trans Check transaction data O Select to activate Indicator for checking
data transaction data of
objects in the settlement
Choose Execute to process the settlement.
All chosen orders for a given plant in a particular fiscal period are settled to their respective cost
collectors. Inventory accounts are properly credited and debited to reflect actual usage of material and
cost centers are appropriately charged for the activities confirmed for the order.
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BUSINESS PROCESS PROCEDURE
Title: Settle Production Orders
Accelerated SAP Production Planning - collectively
Organization/Area
EUP Category:
File Name: CO88 Release: R/3 4.6C
Responsibility: Dennis Production Controller Status:
Jollicoeur
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4/17/2019 Dennis Jolicoeur 5 of 6
BUSINESS PROCESS PROCEDURE
Title: Settle Production Orders
Accelerated SAP Production Planning - collectively
Organization/Area
EUP Category:
File Name: CO88 Release: R/3 4.6C
Responsibility: Dennis Production Controller Status:
Jollicoeur
Click the error button and a list of errors pops up
A quick review indicates that all of these were caused because materials were improperly set up in the material
master file.
Once corrected, settlement can be accomplished by taking off of test mode and running to completion.
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