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Settlement of production order

This post introduces how to settle the cost of production order to material or sales order.


STEP 1 Get into business transaction CO03.

Follow the SAP menu path “Logistics -> Production -> Shop Floor Control -> Order -> CO03 – Display ” to display the production order, from which we can check the settlement of it.


STEP 2 Input the production order and press “Enter” on the computer keyboard to display the production order.


STEP 3 Follow the menu path “Header -> Settlement rule” at the top of the window to display the settlement rule of the production order.


STEP 4 Check the settlement rule of production order.

From the screenshot below we can figure out that the settlement receiver of the production order is the finished product related to the production order. Besides, the settlement receiver can be sales order item, cost center, WBS element, etc. Usually the settlement rules are created automatically when creating the production orders, and the settlement receivers are decided by the customizing of the type of the production order.


STEP 5 Settle the production order if the settlement rule is correct.

After checking the settlement rule and confirm the settlement rule is right, we need to settle the cost of the production order to the receiver. We access transaction KO88 via SAP menu “Logistics -> Production -> Shop Floor Control -> Period-End Closing -> Settlement -> KO88-Individual Processing”


STEP 6 Fill the required fields.

Input the production order, the settlement period, the fiscal year, then tick the check boxes of “Test Run” and “Check trans.data”. Click “Execute” button in the top left hand corner.


STEP 7 Click the “Detail lists” button to display the result of the test running.


STEP 8 Check the result of the test running.


STEP 9 Click the “Back” button.


STEP 10 Click the “Back” button again.


STEP 11 Make actual settlement if the result of the test running is correct.

Don’t tick the check box “Test Run”, then click the “Execute” button.


STEP 12 Click the “Detail lists” button to display the result of the actual settlement.


STEP 13 Below is the screenshot of the actual settlement, you can click the “Accounting documents” to display the generated accounting documents during the actual settlement.


STEP 14 Double click the “Accounting document” item.


STEP 15 Display the accounting document.


STEP 16 We can also double click the “Controlling document” item in “STEP 13” to display the controlling document.


STEP 17 Display the controlling document.