Define Default Values for Order Types (PP and CO)

Here you define the default values for the production orders for each plant and order type.

The default rule determines whether settlement is carried out after the last delivery or in each period.

For orders whose costs are settled to stock, settlement can take place either at the end of the period (settlement by period) or after final delivery (full settlement).
For orders that are assigned to a
cost object hierarchy , settlement must take place in each period.
For more information on handling orders within a cost object hierarchy, see Define cost object categories for cost object hierarchies.
For orders that are assigned to a
sales document item or WBS element, the settlement type can be GES (full settlement) or PER (periodic settlement) if you are using a valuated sales order stock.
For orders that are assigned to a sales order item or WBS element, the settlement type must be GES (full settlement) if you are using a nonvaluated sales order stock. The costs for these orders are included in results analysis of the sales order item or WBS element.
For more information on orders with nonvaluated sales order stocks, see Define results analysis versions.

You also specify the following:

The results analysis key controls the calculation of work in process.

For production orders with a quantity structure, you also specify the following:

The costing variant (preliminary costing) determines which costing type and variant is used to calculate the planned costs.
The valuation variant selected through the costing variant is displayed for informational purposes. The costing sheet for overhead calculation is proposed through the valuation variant.
The costing variant (simultaneous costing) determines which costing type and which valuation variant is used to valuate confirmations.
The valuation variant selected through the costing variant is displayed for informational purposes.

You can also set the following indicators:

Requirements

If you want to define your own costing variants, valuation variants and results analysis keys, you must process the following:

Standard settings

The standard setting contains the following default values for Cost Object Controlling in order-related production in plant 0001:

OrdT DRul PreC SimC
PP01 PP1 PPP1 PPP2
PP02 PP1 PPP1 PPP2
PP04 PP1 PPP1 PPP2

If you want to use periodic settlement with production orders and process orders, you must change the default rule to PP2.

Recommendation

If you want to use periodic settlement in make-to-stock production or sales-order-related production with a valuated sales order stock on the one hand, and full settlement in sales-order-related production with a nonvaluated sales order stock on the other, you must define two order types with different default rules.

Actions

Enter the default values you require.

Further notes

If you want to use production orders, you must also check whether the order management indicator is set for each fiscal year in the controlling area.

Define controlling area

The costing variant for preliminary costing of production orders without a quantity structure is specified in the planning profile. There is no costing variant for simultaneous costing.

Define planning profiles for production orders(C0)

If you use alternative sequences in the routing, then the selection of the sequences can be included in the production order and thus also in the preliminary cost estimate. To do this you must carry out the following steps in Production Planning in the order-type-dependent parameters:

Define order type-dependent parameters