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What is Production Order Settlement in SAP about?

Production order settlement offsets costs that were initially recorded in the financial (FI) portion of the system to the general ledger (G/L) accounts where they originated. Costs like materials and overheads are initially debited to production orders and inventory, then transferred to cost of goods sold or a price variance account when orders are completed or delivered to stock. If actual costs differ from target costs, the difference is offset to a price variance account through a settlement entry. The p

Author

Basu Gudageri

Language

EN