Use a Custom ABAP Report to Find "Labor Hours Confirmed on Production Orders" Data Entry Mistakes... Before Your Month-End Closing

  • by Tim Hodge, Senior SAP Platinum Consultant, ICM America LLC
  • April 15, 2002
At some R/3 sites, the labor time spent on any given Manufacturing Order is recorded at a standard value, possibly as part of a backflushing transaction; at others, the hope is to have the operators record their actual time spent on each given Manufacturing Order, leaving wide open the possibility that operators may introduce data entry errors. SAP R/3 does not have a standard-delivered report that can identify which Manufacturing Orders have significant errors. However, this article demonstrates a fairly simple ABAP report that can make this kind of "exception research" easy to do.

At some R/3 sites, the labor time spent on any given Manufacturing Order is recorded at a standard value, possibly as part of a backflushing transaction. But at other sites, the hope is to have the operators record their actual time spent on each given Manufacturing Order. R/3 supports this. However, this leaves wide open the possibility that operators will sometimes forget or occasionally insert significant typos. This causes a huge headache for the Accounting department since the labor hours recorded have a direct impact on all of the following:

 Manufacturing Order work-in-progress (WIP) and variance calculations

 Cost Center Over-/Under-absorbed analysis

 Cost-of-Goods-Sold calculation (e.g., in the case of Make-to-Order and/or moving average valued finished goods)

At period-end, there might be thousands and thousands of Manufacturing Orders that had been worked on during the month. Which ones, if any, have significant data entry errors? SAP R/3 does not have a standard-delivered report to support this kind of research. But a fairly simple ABAP report can make this kind of "exception research" easy to do. Its output might look something similar to what’s shown in Figure 1.

At month-end, the Accounting department will be very happy to have a way to quickly identify any orders with large Plan vs. Actual labor cost and labor quantity differences, prior to running their WIP, Variance, and Results Analysis calculation transactions.

Tim Hodge

Tim Hodge is a Senior Consultant with ICM America. He graduated with a B.S. in Computer Science from the University of Virginia. His consulting experience includes extensive technical project work for Global 1000 companies across several industries in the US, Canada, and Australia. His latest project involves designing an e-procurement solution, which his client plans to implement at sites on five continents. Tim currently resides in Charlotte, North Carolina.

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