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SCENARIO 3: PCC IN DISCRETE MANUFACTURING/PCC WITH PRODUCTION ORDER (normally we have WIP) Standard order type is PP08 Order category is 10 onlySTEP: DEFINE ORDER TYPE FOR PCCPATH: IMG production shop floor control master data order define order types Select order type: PP08 Click on copy Change order type: RIPC Save

STEP: DEFINE ORDER TYPE DEPENDENT PARAMETERSPATH: IMG production shop floor control master data order define order type dependent parameters Select plant: 1000 and order type: PP08 Click on copy Change the plant to RI10 Change order type to RIPC Enter and save

STEP: CHECK ORDER TYPESPATH: IMG controlling product cost controlling cost object controlling product cost by order manufacturing orders check order types Select order category: 05 and enter Give order type: RIPC and double click on it Change the settlement profile to RIPO Other settings are like earlier Save

STEP: DEFINE COST ACCOUNTING RELEVANT DEFAULT VALUES FOR ORDER TYPES AND PLANTS Select plant and order type combination Double click on it Observe default rule as PP2 which is a periodic settlement RA key: select RLTC (it is not required also) Preliminary/version costing: select RLPC Simultaneous costing: RLAC (Once remove the above settings and see the result) Activate product cost collect check box (which specifies PCC is real) Save

STEP: CHECK CONTROL DATA FOR REM PROFILESPATH: IMG controlling product cost controlling cost object controlling product cost by period simultaneous costing check control data for REM profile Select REM profile: 0003 (standard one) and observe the settings

STEP: CREATE MATERIAL MASTER (MM01) Create a new material copying anyone Dont activate repetitive manufacturing check box as this is discrete manufacturing REM profile: select 0003 No need of any production version All the other settings are common Save

STEP: CREATE BOM (CS01)STEP: CREATE ROUTING (not rate routing) (CA01) Create same like earlier, but use control key as either PP01 or PP98 and for the last operation use PP99 By using this routing, we cant do MFBF in this case (this MFBF is applicable only for PCC in normal case) (Check what happens if we dont assign materials to operations)

STEP: STANDARD COST ESTIMATE (CK11N)STEP: MARK AND RELEASE (CK24)STEP: CREATE PCC (KKF6N) First we create PCC and later we do create order Order type: RLPC (which we used for earlier PCCs) Select BOM and routing radio button, not the production version as we are doing discrete manufacturing Planning plant: RI10 BOM usage: select 1 Alternative BOM: 1 Task list type: select N (routing) Group: press F4 and select Confirm or continue Say yes to the message Save Refresh PCC Under header data tab Click on order/production version We get a message saying no order is yet created as we have not create order

STEP: DEFINE SCHEDULING PARAMETERS FOR PRODUCTION ORDERS Select plant: 1000 and order type: PP08 combination Click on copy button Change plant to RI10 Change order type to RIPC (that we created in this scenario) Enter and save

STEP: CHECK AVAILABILITY DURING CREATION OF ORDER (OPJK) Select plant: 1000, order type: PP08 and business functions: 1 and 2 Click on copy button Change the plant to RI10 and order type to RIPC for both business functions Enter and save

STEP: CREATE PRODUCTION ORDER (CO01) Order type: RIPC (Try to understand why we use RIPC that RLPC) We get error if we have missed defining scheduling parameters for production orders Observe order as PCC Click on release button We get the error if we have missed defining check availability during the creation of order Save Ignore the message and save

STEP: DISPLAY ORDER (CO03) Observe the order status as PCC, which means in this order PCC is used Check the plan cost: For plan costs, from the menu bar, select go to costs analysis (We can see order has no plan costs, reason is the order is assigned to PCC and therefore not automatically costed) Check plan cost at itemization level (we see here) For plan costs at itemization level, select go to costs itemization Ignore the message and continue (We can see plan costs at itemization level)

STEP: CHECK PCC (KKF6N) Click on order/PV button, under header data tab Now we can see production order details here

STEP: DEFINE CONFIRMATION PARAMETERS FOR THE ORDER TYPEPATH: IMG production shop floor control operations confirmation define confirmation parameters Select plant: 1000 and order type: PP08 combination and click on copy Change plant to RI10 Order type to RIPC Enter and save

STEP: CONFIRM ACTIVITIES AND ALSO ISSUE MATERIAL AGAINST THE PRODUCTION ORDER (CO11N)NOTE: We can post both goods issue and confirmation entries in this screen only. If we wish we can do individual also. Production order number: 123456 Operation: 010 Yield: 4 Enter If we wish we can make the changes to the activities of operation 10 which are proposed by the system Enter Click on goods movement button Change the quantities if we wish Save Observe the message activities and goods are posted to the production order Entry regarding goods issue:FI entryCO entry

Dr. RM consumptionDr. PCC

Cr. Stock-

Entry regarding activities confirmation:FI entryCO entry

No entryDr. PCC

Cr. Cost center

Observe here, even though postings are done against production order, the cost object considered for CO is PCC only, as PCC is the real objectNOTE: Only goods issue and quantity confirmation are against order, but all the month end activities are against the PCC level. Whether we post against order or PCC, the cost object considered is only PCC as it is real and order is statistical.

STEP: CHECK THE PRODUCTION ORDER REPORT (KKBC_ORD/CO03) Enter the parameters Observe the message, saying cost collector is PCC not the production order

STEP: CHECK THE PRODUCT COST COLLECTOR (KKF6N) Click on header tab Click on costs button Change the layout and observe the costs Observe actual costs updated under PCC

STEP: MONTH END PROCESS AT PCC Calculate WIP at PCC level (WIP is valuated at target cost only) Run variance calculation at PCC only Settlement at PCC only

STEP: CHECK PCC (KKF6N)

STEP: WORK FOR REMAINING QUANTITIES ALSO Same steps like above In the last operation, we may receive goods Entry in case of goods receipt:FI entryCO entry

Dr. Stock-

Cr. COGMCr. PCC