Goods Receipt for Production Order

Goods receipt against the production order can be done partially or fully in finished goods storage location (Defined in Material Management).

It is possible to do an automatic goods receipt for the order during confirmation. Automatic goods receipt takes place during final     confirmation of the order.

When the order quantity equals the delivered quantity, the status of the production order changes to deliver.

The authorization for issuing and receiving materials to and from order     /cost

centers will be with the persons who confirm production.  However,

authorizations for other inventory transactions like scrapping of goods,      stock transfers, etc. can be given to other persons identified for those         activities.

Production Order Technical Completion

After the order is completed it has to be marked as technically completed to enable

cost settlement. The order status changes to “TECO”. This necessitates the closure

of orders at least once in a month. This can be   done by mass processing of

orders.

For those orders which can not be closed at month end, the cost on these orders will be taken as ‘WIP’ by the system and these orders can be closed once the production of that particular product is completed for that lot.

Production Order Settlement

When a production order is settled, the actual costs incurred for the order             are settled to one or more receiver cost-objects (for example, to the account            for the material produced or to a sales order). Offsetting entries are          generated automatically to credit the production 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 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.