Understanding the Production Close Process
After you've completed production, you will close production and calculate variances for postings to the general ledger. You will also analyze production costs and variances. The first step in the close process is to close production to any further material or labor transactions. During the close process, you may find that you need to reopen production to correct data entry errors, or reopen production that was closed prematurely.
Before a production ID or production schedule is closed for accounting , you can generate a Potential Production Variance report. This report lists the potential variances based on the current snapshot of production. In addition, the system can send the report to the appropriate individuals by using the Potential Prdn Variance Report workflow to notify them of the potential variances. When this report is run, no accounting close occurs and no variances are posted. Periodically, you can review this report to highlight the variances immediately so that you can correct potential production problems.
Note: Production must have a status of In Process or higher to generate potential production variance reports.
If you enable the Variance Drilldown feature at the business unit, you can review the production variance calculations. After a production ID or production schedule has been closed for accounting, use the Production Variance Drilldown component to view the calculations of each production variance. This data is retrieved from the Production Variance Detail record (SF_VARS_DETAIL) and the Configuration Variance Detail record (SF_CFGVAR_DET ) that are populated during the Close Production process (SFS1100). In addition, after the Cost Accounting Creation process has been run, the Posted Variance Drilldown page (Cost Accounting, Inventory and Mfg Accounting, Analyze Production Costs, Posted Variance Drilldown) can be used to view the accounting lines related to the production variances. Links on both the Production Variance Drilldown – Review Variances page and the Posted Variance Drilldown page enable you to drill down into more detailed information or drill up into summary information.