Which values need to be settled to Financial Accounting and Margin Analysis during settlement of a production order?

Study for the SAP End to End Processes Test. With flashcards and multiple-choice questions, each question offers hints and detailed explanations. Ace your exam by understanding SAP's crucial processes!

When settling a production order, the main values that need to be transferred to Financial Accounting and Margin Analysis include Work in Progress (WIP). This value represents the cost associated with the production process that has not yet been completed. In SAP, WIP is crucial for accurately reflecting the financial status of ongoing production activities in the financial statements.

When production orders are settled, the WIP is calculated based on the costs of raw materials, labor, and overhead attributed to the production that has occurred up to the reporting date. This ensures that the financial accounting reflects an accurate picture of the costs that have been incurred for goods that are still in production.

As for the other values, while Variance Categories, Confirmation of Time, and Price Differences may also play a role in broader production and costing processes, they are not the primary values that are settled to Financial Accounting and Margin Analysis specifically during the settlement of production orders. Their importance lies more in internal reporting and analytics rather than the direct financial postings needed at the end of a production cycle.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy