In T Code OSP2 - Define REM profile.This is the major SPRO setting,where in under Control Data 1 you have to specify whether Auto GI happens when GR posting,are you going to you reporting points and is that an optional or mandatory and for error movements whether is he system has to create cumulated post processing records and and also individual post processing records,whether activities has to be posted and which cost it has to pick up while backflushing thats standard cost or the preliminary cost. Under Control Data 2 for planned orders reduction and under movement types the relevent one for make to stock and for make to order. In OPU5 you have to define scheduling parameters for the planned orders(for order type RS/PE). If you are going to use MF60 pull list,then for the plant you have to define the parameters for 311 movement type. If you are going to use Planning table means hen define he selection parameters.. Please check whether you have maintained following master data & settings. Master Data Material master creation using T-code MM01 BOM creation using T-code CS01 Rate Routing creation using T-code CA21 Rem profile - SPRO ->Production planning -> Rem.Manuf->Control data or use existing one Assign Bom selection method = 2 & 3 (Prod version) in MRP view Rem MFG indicator - MRP4 view in MM01. Assign the REM profile to a material - MRP4 view in MM01. create Valid Production version - MRP4 view in material master & Check Rem mfg ind Assign the BOM and routings in Prod. Version & check the settings. 2.For Preliminary Cost Estimate: Create version specific product cost collector for Header material and preliminary cost estimate KKF6N 3 For standard cost Estimate. 3.create PIR in MD61. 4 .Run the MRP for your header material - MD02/MD01 - results run scheduler (PE type Planned order) will be created. Here planned order cant be converted to Production order. 5. Use planning table for scheduling and capacity planning - MF50. Here you can assign production quantities to production line 6. Use Pull list for material staging (if material storage exists in prod location ) - MF60 7. Backflush (confirmation) the Planned order using T-code MFBF. Results planned order will Reduced and GR,GI, activity cost will be posted. You need not convert the planned order to production order 8. To see Backflushed documents use T-code MF12 9. Then Goto KKF6n to see the Manufacturing cost.Repetitive process Configuration

1) REM profile in t-code OSP2, after creating we assign to materail master 2) so based on REM profile settings, entrire REM execution depends upon Master Data 1) Creating material master - MRP 1, MRP 2, MRP 3, MRP 4 Note - in REM work scheduling view is not required, reason is we don't deal with production orders in REM 2) BOM - CS01 3) work center - CR01 4) Rate-Routing - CA21 5) Production Version Planning SOP & Demand management & then MRP Execution 1) if we want to divide the Fore cast requirements between two PV's then we can do in MF50 2) then do confirmation of plan orders in MFBF 3) then checking Backflush Documents in MF12

Goods Receipts in Cost Object ControllingUseA goods receipt is a goods movement in Materials Management (MM) that transfers a product into inventory. The R/3 System supports the following types of goods receipts: y y Goods receipt of an externally procured material with reference to a purchase order Goods receipt of a material manufactured in-house with reference to a manufacturing order (production order or process order) or run schedule header There are two different cases: o The production order or process order is not assigned to a product cost collector: The manufacturing order is credited. o The production order, process order, or run schedule header is assigned to a product cost collector: The product cost collector is credited.

y

Goods receipt of a material manufactured in-house with reference to a product cost collector

A preliminary inventory valuation takes place with goods receipts to the make-to-stock inventory or to the valuated sales order stock. The inventory value in the material master is updated accordingly.

PrerequisitesYou have specified which accounts are updated with the relevant goods movement in Customizing for Materials Management under Valuation and Account Assignment in Creating Automatic Postings. You link the following for a valuation area: y y You link transaction key BSV (Change in stock account) to a material stock account. You link transaction key GBB (Offsetting entry for inventory posting) to account modification AUF (Goods receipts for orders with account assignment) and a plant activity account (inventory change).

FeaturesYou enter a goods receipt for the manufacturing order or run schedule header. This goods receipt can be created automatically at the time of confirmation of the last operation in a manufacturing order or run schedule header.

In repetitive manufacturing, all goods movements are entered in the Repetitive Manufacturing menu. In repetitive manufacturing, goods movements are not entered from the Materials Management menu. If you deliver goods to the make-to-stock inventory or to the valuated sales order stock, the valuation takes place as follows: y With external procurement, material can be valuated either when the goods receipt is entered or when the invoice is received. If the material is valuated at the time of the goods receipt, this is a preliminary valuation using the net order price. If the invoice price is not the same as the net order price, the difference between the invoice price and the net order price is debited to inventory when the invoice is received. For in-house manufacture, preliminary valuation takes place when the goods receipt is entered. The valuation is calculated by multiplying the quantity delivered to inventory by the price in the accounting view of the materials master record. The price control specified in the accounting view determines which price is used to valuate the goods receipts: o o If the price control indicator is set to S, the goods receipts are valuated at the standard price of the material. If the price control indicator is set to V, the goods receipts are valuated in accordance with the settings in Customizing:

y

o

In Product Cost by Period, you make this setting under Simultaneous Costing p Define Goods Received Valuation for Order Delivery. In Product Cost by Order, you make this setting under Define Goods Received Valuation for Order Delivery.

o

This section will now discuss goods receipts with in-house manufacture. When a goods receipt is entered for a manufacturing order or run schedule header, the following events take place: y y The order or product cost collector is credited. In Financial Accounting, the inventory account is debited and the inventory change account is credited. A material document and an accounting document are generated.

The inventory valuation performed at the time of the goods receipt for the manufacturing order or product cost collector is a preliminary valuation. When you perform settlement in the period-end closing process in Product Cost by Period or Product Cost by Order, then: y If valuation is at standard price, actual cost exceeds standard cost, and stock coverage is sufficient, the system debits the expense account (price differences) and credits the inventory change account ( see also : Example for Settlement with Stock Shortage). If valuation is made at standard price, actual cost is less than standard cost, and stock coverage is sufficient, the system debits the inventory change account and credits the revenue account (price differences). These postings ensure that the inventory is valuated at the standard price even after settlement of the variance. y y If valuation is made at moving average price and actual cost exceeds standard cost, the system debits the inventory account and credits the inventory change account. If valuation is made at moving average price and actual cost is less than standard cost, the system debits the inventory change account and credits the inventory account. mixed cost estimate for the relevant material, the standard price is the mixed

y

If there is a price.

The moving average price can change with each goods movement and when variances are settled at the end of the period. If the controlling area currency differs from the company code currency, the system will update the value of the goods receipt in both currencies.

Automatic Goods ReceiptYou can have the system automatically generate a goods receipt when the last operation is confirmed. The prerequisites for this are as follows:

y

In repetitive manufacturing, you must specify in the repetitive manufacturing profile that an automatic goods receipt is to be generated when the actual data are entered for the last reporting point. You do this in Customizing for Product Cost by Period under Simultaneous Costing p Check Control Data for Repetitive Manufacturing Profiles.

y

y

In order-related production and process manufacturing, you must specify in the control key of the routing that the last operation is a reporting point (repetitive manufacturing) or a milestone (order-related production and process manufacturing). In order-related production and process manufacturing, you must specify in the control key of the routing that an automatic goods receipt should be generated.

Note the following: If an additional operation follows a reporting point for which an automatic goods receipt is posted, the activities of that operation are no longer automatically posted.

Goods Receipt and BackflushWhen you post the goods receipt, you can backflush the input materials. You can change the proposed material components and add others. The backflush uses the standard price or the moving average price (if the Actual Costing/Material Ledger component is not active) or the period price (if Actual Costing/Material Ledger is active) selected in accordance with the price control in the accounting view of the materials master record. You can change the proposed materials and quantities for the backflush.

Prerequisites for Backflush at Goods ReceiptMake the settings required for the automatic goods receipt (see above). Also make the following additional settings: Repetitive Manufacturing You specify in the repetitive manufacturing profile with the indicator GR and GI that a simultaneous goods receipt / goods issue is to take place.

In repetitive manufacturing, you can create a reporting point backflush with an automatic goods receipt and simultaneous goods issue backflush. Make the required settings in Customizing in the repetitive manufacturing profile.In repetitive manufacturing, the system explodes the current BOM for the material (the BOM specified for the posting date or the BOM specified on the basis of a revision level in the production version) to determine which material component usage is proposed.

You enter the goods receipt in the menu of Repetitive Manufacturing.

You deliver 500 tons to stock for a run schedule header. The standard cost estimate for the product was created on the basis of 1000 tons. A reference time of 100 minutes to produce 1000 tons is assumed. To produce 500 tons, an activity allocation on the basis of 50 minutes is performed. The activity price for the activity type is USD 30 per minute. The system updates actual costs of USD 1500 to the product cost collector. A backflush of 500 tons is posted on the basis of the current BOM. The system updates material costs of USD 4000 to the product. The standard price for the product is USD 10 per ton. The goods receipt is valuated at USD 5000. The system credits the product cost collector with USD 5000. At the end of the period the remaining USD 500 is settled to inventory. Order-Related Production and Process Manufacturing In order-related production and process manufacturing, you must specify in the operation of the routing that a backflush should be generated. You specify in the control key of the last operation that an automatic goods receipt should be generated. In order-related production and process manufacturing the system includes the BOM in the manufacturing order and includes the assignment of material components to operations.

Goods Receipt and Activity AllocationIn repetitive manufacturing, if you are not using reporting points you can specify in the repetitive manufacturing profile that an activity allocation should be performed when the goods receipt is entered. When activities are posted, the system generates an internal activity allocation on the basis of the following information: y The activity quantity is determined on the basis of the quantity structure in the current standard cost estimate for the material produced, or in the preliminary cost estimate for the product cost collector. You can change the activity quantity manually. The current price for each activity type is taken from Cost Center Accounting on the basis of a valuation variant. The valuation variant is selected through the costing variant for the actual costs. The costing variant for the actual costs is selected through the order type of the production cost collector.

y

Special Features of Production Cost Collectors for Individual Requirements Materials

If you are using a production cost collector for an individual requirements material, the production cost collector is always debited with all material costs and activity allocations, and credited with the standard price at the time of the goods receipt.

See also:For information on the posting logic, refer to the following section: Costing Object Controlling from an Accounting Point of View For more information on material valuation for the period price, refer to the documentation Actual Costing/Material Ledger. For more information on goods receipts and inventory management, refer to the documentation LO Materials Management. For information on goods receipts for confirmations, refer to the documents LO-PP Production Orders - Confirmations and LO-PP Repetitive Manufacturing - Backflushing For information on the special requirements regarding product cost collectors in sales-orderrelated production, see the following sections: Product Cost Collectors in Sales-Order-Related Production Valuated Sales Order Stock: Valuation Standard Price with Valuated Sales Order Stock For information on settlement, refer to the section Settlement in Product Cost by Order or Period. For information on the recommended price control, refer to the section Basic Decisions in Cost Object Controlling.