Rework Order: Repairing Defective Output and Collecting Its Cost Separately
Defective finished goods are blocked, repaired on a separate rework order that collects the extra labour, released back to unrestricted stock (343), and the rework cost is settled to a quality cost center instead of distorting the original order.
Educational content. SAP behaviour varies by configuration and release. Spotted something off? Report it.
Digital twin
01Defects found and blocked
8 EA of FG-2000 are in blocked stock. The original production order is already settled.
Business scenario
After production order 1000001 was settled, inspection finds 8 EA of FG-2000 with misaligned holes. They are blocked. Re-drilling takes half an hour each on assembly line 1.
All companies, numbers and documents are fictional demo data.
Step-by-step flow
- 01
Defects found and blocked open in twin
8 EA of FG-2000 are in blocked stock. The original production order is already settled.
They must not be shipped until repaired.
- 02
How should the repair be costed? open in twin
The original order is closed. How do you capture the repair work?
It should be visible as such, not mixed into the product's normal production cost.
- 03
Re-opening a settled order open in twin
Posting to a settled (often technically completed) order is blocked or creates a new variance in a later period, mixing rework into product cost.
Rework cost would be hidden inside production variances instead of reported as quality cost.
- 04
Create the rework order open in twin
Rework order 1000012: one operation, 4 hours, settled to the quality cost center.
Other designs exist — a rework operation inserted in the original order, or an order that issues and re-receives the material. Which one fits depends on how costs should be reported.
- 05
Repair on the line open in twin
The 8 units are re-drilled. 4 hours are confirmed: ₹1,600 on the rework order.
The goods stay blocked in the system until they are released.
- 06
Release the repaired units (343) open in twin
Repaired: blocked → unrestricted 8 EA. Unrestricted 140 → 148.
The units can be sold again.
- 07
Settle rework cost to quality open in twin
₹1,600 settled to cost center CC-4900 Quality.
Quality cost reports now show what defects cost.
- 08
Rework complete open in twin
8 units saved instead of scrapped, at ₹1,600 of rework, reported as quality cost.
Compare the cost of rework with scrapping (8 × ₹1,200 = ₹9,600) — that comparison is why the cost must be visible.
SAP documents
Stock impact
| Step | Plant / SLoc | Stock type | MvT | Change |
|---|---|---|---|---|
| Release the repaired units (343) | 1000 / 0001 | Blocked | 343 | −8 EA |
| Release the repaired units (343) | 1000 / 0001 | Unrestricted use | 343 | +8 EA |
Accounting impact
Activity allocation to the rework order
ConceptualRepair on the line
- Dr Rework order 1000012 — machine hours₹1,600
- Cr Cost center CC-4300 — activity allocation₹1,600
Confirmed hours at the work center's activity rate.
Settlement of the rework order
Configuration dependentSettle rework cost to quality
- Dr Cost center CC-4900 Quality — rework₹1,600
- Cr Rework order 1000012 — settlement₹1,600
The settlement rule sends rework cost to a cost center (cost of poor quality). The receiver and settlement cost element are configuration dependent.
Typical conceptual flow. Actual G/L accounts and posting behaviour depend on material valuation, automatic account determination and system configuration.
Movement type
- 343Blocked → unrestrictedReversal: 344
Repairs defective output in a controlled way and reports the cost of rework separately from normal production cost.
Transactions & Fiori apps
- CO07 — Create Production Order without Material
- CO02 — Change Order
- CO11N — Confirmation
- MIGO — Transfer posting
- KO88 — Settlement
- Manage Production OrdersAvailability depends on release and scope
Differences by SAP version
CO07 for orders without material; rework operations via CO02.
Same options; QM defect recording can trigger rework.
Rework handled through Fiori production and quality apps; scope dependent.
Configuration
Rework approach
Configuration dependentSeparate rework order, rework operation in the original order, or rework with material issue and receipt.
Settlement profile
Configuration dependentAllowed receivers for rework orders.
Prerequisites
- Order type usable for rework
- Settlement rule to a cost center (or other receiver)
- Activity prices for the work center
Master data
- Work center
- Activity price for rework hours.
Organizational structure
- Plant 1000
- Cost center CC-4900 Quality (demo)
Tables
| Table | Description |
|---|---|
| AUFK / AFKO | Rework order |
| AFRU | Rework confirmations |
Integration
- QMDefects are typically found and blocked through inspection and usage decisions.
- CORework cost settled as cost of poor quality.
Common errors
“Cannot confirm on the original order”
Likely causes: Order technically completed or closed
Where to look: Order status
Troubleshooting
Something went wrong? Work through these checks in order. They are diagnostic questions, not configuration instructions — confirm changes with your system owner.
CHECK 1
Rework cost
- Settlement rule on the rework order?
- Activity price maintained?
Interview questions
How can rework be handled in PP?
Three common ways: insert a rework operation into the original order (cost stays on it); create a separate rework order without material whose cost is settled to a cost center or the original order; or a rework order that issues the defective material and receives it back. The choice depends on how rework cost should be reported.
Quiz
References
- SAP SE — SAP Help Portal: Rework in Production Orders (source)
- SAP SE — SAP Help Portal: Orders without Material (source)
Explanations are original. They summarize standard behaviour; always validate against your system's release and configuration.
Version history
| Version | Change |
|---|---|
| 1.0.0 | Initial version. |