Time: 2025-09-18 
Views: 120
[Foreword]
Decision has been deeply involved in the SAP field for more than 19 years and has been praised by many customers. In order to better help customers implement digital projects, the "Decision Expert Column" is completely free and open source, paying tribute to Musk's open source spirit!
Based on the senior capabilities of Decision's expert consultant team with more than 20 years of SAP experience, combined with Decision's 1,000+ successful project cases, this article summarizes and publishes the corresponding research experience and suggestions of enterprises in promoting ERP project implementation, and continues to escort the SAP implementation and delivery of enterprises.
[Problem description]
A company uses internal orders to aggregate the cost of construction in progress. In recent months, it has been discovered that after KO88 settles the internal order amount to the construction in progress, the CKMLCP material ledger is then re-settled, resulting in a balance in the internal order. This internal order balance causes a discrepancy between the profit on the balance sheet and the profit on the income statement. What is the cause? How can this be addressed?
[Problem Analysis]
1. There are two types of internal orders: settlement type (real posting) and statistical type.
2. When posting, enter both the internal order and the cost center. The system prioritizes posting to the internal order. Costs are only posted to the cost center if the internal order is statistical, as shown in the following table:
3. Looking at the internal order master data, you can see that it is: statistical type.
4. MIGO checks the material requisition voucher for the settlement month and can see that the internal order and cost center are entered in the material requisition voucher at the same time.
5. Check the SE16 transaction code to see the discrepancies in how the material ledger processes this withdrawal voucher.
As you can see, the cost receipt classification recognized by the system is: VEAU = internal order, difference revaluation Z2 = revaluation according to the original account and cost object.
6. Transaction code OMX7 can be used to see the configuration: Variances revaluation Z2 = Revaluate by original account and cost object.
7. Internal orders are settlement-based (real posting). Therefore, even if both the internal order and the cost center are entered in the material requisition voucher, the system prioritizes posting the cost to the internal order. The cost center is only used for statistical posting!
Routinely, material requisitions are recorded at standard cost. At the end of the period, after the CKMLCP runs the material ledger, the cost variances for the requisitions are supplementally posted to the internal order.
This raises the question: at month-end closing, should KO88 be settled first, or CKMLCP?
Traditionally, CO monthly closing involves first settling KO88/CO88, then CKMLCP. This is the processing order for production orders. For internal orders that also carry material ledger variances, KO88 settlement is performed after CKMLCP settlement. In this case, internal orders for work-in-progress require two settlements: one to transfer the standard cost of the requisitions to the work-in-progress, and a second to settle the cost variances for the requisitions.
8. Why are material withdrawal differences for other internal orders from previous months settled to the cost center, without re-settling the internal orders?
This is because other internal orders are statistical, while internal order 100092 is the settlement type (real posting).
Therefore, material withdrawals for other internal orders are routinely posted to the cost center in real time, and statistically posted to the internal orders. After the CKMLCP settlement at the end of the period, the differences are also posted to the cost center.
9. Why does the cost variance allocated to the material ledger for internal order 100092 affect the income statement if it's not carried forward?
This is because: an internal order is a cost object, accounted for using a profit and loss account. The balance should actually be reported in the balance sheet under "Construction in Progress." However, the system treats it as a profit and loss account before the end of the period. At the end of the period, the balance must be carried forward to "Construction in Progress."
[Solution]
1. After settlement using transaction code CKMLCP, KOC4 checks whether all internal orders (for projects under construction) have been settled.
2. If not, but there is a balance, use transaction code KO88 to settle again. There's no need to worry about duplicate settlements. The system automatically checks for unsettled incremental data. If so, only the incremental amount will be settled, as follows:
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