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Settlement is nothing but offsetting the costs to the FI portion. CO objects carry costs, which needs to be re-assignd to the G/L accounts where it comes from. CO never generates any data, it only tracks the same onto some objects which are analysed for definite purpose of tracking the resources which are debits in FI as costs in G/L). In simple words, the flow is like following - 1. Direct Costs are incurred ( like material consuption ) in form of issues to prod orders. These are captured in G/L. Whenever you issue, consumption account is debited. But are also debited to prod order as Consumption...Dr
2. Indirect costs are incurred in form of debits to Cost centers in
G/Ls. These are actually to be allocated & absorbed in Products
via Prod Orders. So it is allocated to prod orders via diff media
like costing sheet or Indirect activity allocations.
When the costs are incurred these should be transffered futher when
the order is closed or deliverd to stock.
Inventory....Dr
If your Fin Goods' predetermined cost are same as that of actual costs
incurred, there will no price difference account affected. But when
your plan cost ( target cost ) & actual costs are differnet, the difference
is OFFSET or SETTELLED
Cost of Prod / Mfg Var....Dr
Note that Price diff accont is not created as COST ELEMENT. If actual cost is less than target cost, entry would be reverse. SAP FI Tips by : Dhiraj Deo Fast Links:
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