Maximize Cost Accuracy by reflecting accurate actual cost through Revaluation of Activity Types for SAP Production Orders during month end closing!

Revaluation of activity types for SAP Production orders involves adjusting the costs associated with production activities to reflect actual costs more accurately. This process ensures that the production orders are valued correctly, which is crucial for accurate financial reporting and cost management.

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Uses:

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1. Accurate Cost Allocation: Ensure actual costs are allocated to production orders.
2. Variance Analysis: Analyze variances between planned and actual costs.
3. Financial Reporting: Reflect actual costs in financial statements.

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Benefits:

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1. Improved Cost Accuracy: Allocate actual costs to production orders.
2. Enhanced Decision-Making: Make informed decisions with accurate cost information.
3. Compliance: Ensure compliance with accounting standards.
4. Transparency: Gain clear visibility into actual production costs.

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Process Steps:

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• Execute Splitting: Transaction Code: KSS4 Description: Execute the splitting process to allocate the planned costs to the activity types based on the defined splitting structure
• Calculate Actual Activity Prices: Transaction Code: KSII Description: This transaction is used to calculate the actual activity prices based on actual costs incurred during the period.
• Revaluate Production Orders: Transaction Code: CON2 Description: This transaction is used to revaluate production orders with the actual activity prices calculated in the previous step.
• Maintain Costing Versions: Transaction Code: OKV1 Description: Ensure that the costing version allows for revaluation with actual prices.
• Run Settlement: Transaction Code: KO88 Description: Perform the settlement of production orders to allocate the actual costs to the appropriate cost objects.
• Update Activity Prices: Transaction Code: KP26 Description: Update the activity prices in the system to reflect the actual costs.

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By following these steps, you can ensure that the actual costs incurred during production are accurately reflected in your financial statements, leading to improved cost accuracy and better decision-making.

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