202
B2R · CAPABILITYClose and explain integrated cost

B2R 202 · COST CLOSE

How does B2R close integrated cost?

Turn completed operating and production postings into allocated, settled, reconciled, and explainable control evidence.

B2R ROLE

Make period-end cost explainable before reporting

Cost close is the controlled sequence that converts source postings into a reconciled management result. The applicable steps depend on the object: allocation for shared cost, WIP and variance for production, settlement for temporary objects, and reconciliation before the result is reported.

WORKING FLOW

From source completeness to accountable result

Run only the processing branches required by the selected object and retain each run's parameters, log, reversal, and exception evidence.

01COMPLETE

Lock the source period

Confirm logistics, payroll, invoices, confirmations, goods movements, and late-posting treatment are sufficiently complete for the close scope.

02PROCESS

Allocate and value

Run applicable allocations, activity pricing, WIP, variance, or results analysis using the approved driver, valuation, and period rules.

03SETTLE

Move cost to its receiver

Settle internal orders, projects, or production orders to the valid receiver and preserve the relationship between sender balance and receiving result.

04RECONCILE

Explain the final position

Compare FI and CO, sender and receiver totals, open balances, source documents, commitments, and reporting output before sign-off.

DIAGNOSTIC EVIDENCE

Find the first broken close boundary

A technically successful run is not proof of a correct result. Start with the source object, then trace the branch that should have changed it.

SOURCE

Period, object status, source postings, quantities, rates, completeness, reversals, and late transactions.

PROCESS

Allocation driver, WIP or variance calculation, settlement profile and rule, receiver, run log, and exception list.

RESULT

FI/CO agreement, sender reduction, receiver receipt, residual balance, report value, owner, and resolution.

WORKED EXAMPLE

Production cost closes, but the report still disagrees

A production order has complete confirmations but a late goods movement arrives after variance calculation. The reviewer checks the source period, reruns the applicable valuation and settlement branch in the approved sequence, then reconciles the order, receiver, FI/CO totals, and management report. The late posting remains visible as close evidence rather than being absorbed into an unexplained adjustment.

  • Source completeness is checked before close processing
  • Each branch uses its own rule and evidence
  • Settlement and reconciliation remain distinct
  • Residual cost has an accountable owner

SAP REFERENCE BOUNDARY

Validate the selected solution

Budget availability control, planning functions, workflows, and planning products vary by SAP edition, release, and licensed scope.

CONTINUE TO B2R 303Run the complete budget cycle

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