Kurumsal Finans ve Strateji Rehberi | Finance & Strategy Insights

What is CON2 and Why is it Critical?

The SAP transaction code CON2 stands for “Actual Revaluation: Production Order Collective Processing”.

It resides in the Controlling (CO) module—specifically under Cost Object Controlling / Overhead Cost Controlling (CO-OM) in SAP.

Its primary purpose is to perform period-end revaluation of production (or process) orders: converting planned (or standard) internal activity costs to actual prices on a collective (mass) basis.

From a finance manager’s perspective, CON2 is critical for ensuring that the recorded cost of manufacturing orders reflects true, realized cost structures rather than outdated plan or standard valuations.

Technical Function and Process Flow

Primary Functions:

• Revaluation of production or process orders with actual activity/overhead rates instead of planned/standard ones.
• Adjustment of cost postings so that cost centers and production orders reflect the correct internal cost structure.
• Supports the period-end closing process of cost object controlling.

Transaction Details:

• Transaction code: CON2 – Actual Reval.: Prod. Ordr Col. Proc.
• SAP program: SAPLKAZB (standard program executed when CON2 runs).
• Package: KAMV – CO Mass Processing.
• Availability: Present in SAP ECC and SAP S/4HANA (on-premise) versions.
• Limitations: In the SAP S/4HANA Public Cloud Edition, the CON2 functionality is not available; order revaluation is handled differently (via actual costing scopes) in that environment.

Menu Path (examples):

• Logistics → Production → Shop Floor Control → Period-End Closing → Revaluation at Actual Prices → Collective Processing.
• Accounting → Controlling → Product Cost Controlling → Cost Object Controlling → Product Cost by Order → Period-End Closing → Single Functions → Revaluation at Actual Prices → Collective Processing.

When and How to Use CON2

Use Case Scenario:

At month-end (or period-end) when manufacturing/production orders are completed and actual activity quantities and costs are known, CON2 is executed to convert any overhead/internal cost allocations from plan/standard to actual price levels. This aligns production cost objects (orders) with the real internal cost base and supports accurate cost of goods manufactured (COGM) and variance analysis.

Key Steps (high-level):

1. Ensure production orders are in the correct status (e.g., TECO/technically completed or otherwise according to process) and confirmed quantities recorded.
2. Confirm the actual activity rates (internal activity types) and overhead allocations have been posted to cost centers.
3. In CON2, select the relevant plant / controlling area / period / order range for collective processing. (Selection screen parameters such as controlling area, period, year, order number range etc.)
4. Run test run / detail list mode to preview affected orders and postings before final execution.
5. Execute actual run: the system posts revaluation entries, cost centers are credited and production orders are debited (or vice-versa) to reflect actual costing.
6. Review logs and resolve errors (e.g., orders locked, missing activity data, performance issues).

Common Issues & Controls

Common Issues:

• Low performance when executing CON2 for large volumes.
• Error “KI761 – Revaluation is locked by user …” when running for two plants simultaneously.
• No revaluation postings when actual price updated manually (via KBK6) because system is not triggered correctly.

Controls and Mitigation:

• Run in smaller batches or with filtered order ranges to manage performance.
• Ensure exclusive lock control and avoid simultaneous runs on same cost object sets.
• Validate that actual rate updates are fully posted before running CON2.
• Maintain appropriate authorizations; users must have rights for cost object revaluation (e.g., via authorization object K_COC_OBJ).
• In environments using S/4HANA Public Cloud, acknowledge the limitation: the process of order revaluation via CON2 is not supported; alternative methods must be used.

Strategic Value for Finance & Manufacturing Leaders

From your perspective as a finance manager in manufacturing:

• Accuracy in cost reporting: Using CON2 ensures production order costs reflect actual internal activity rates, improving precision in cost of goods sold (COGS) and margin analysis.
• Improved variance analysis: By converting to actual prices, it becomes easier to identify true cost variances between planned vs actual overhead or internal activities.
• Better internal cost control: Helps ensure cost centers and production orders are aligned; internal cost transfers are properly accounted—critical in manufacturing companies.
• Support for audit and compliance: Clear period-end revaluation postings via CON2 support traceability and transparency in cost accounting cycles.
• Operational efficiency: When embedded as a consistent part of your period-end closing routine, CON2 helps avoid residual internal cost postings and reduces reconciliation burden.

Best Practices

• Schedule CON2 as part of your standard monthly (or period) closing calendar. Combine with other closing tasks such as actual activity rate updates (e.g., via SAP KSII), overhead cost transfers, order settlement.
• Use a designated test run mode first to identify orders without the required status or missing activity data.
• Define clear filters (plant, order type, status) to control volume and ensure performance.
• Monitor and log performance metrics. Use insights to optimize execution (e.g., index usage, parallel processing).
• Train controllers and cost object owners on required pre-conditions for revaluation: order confirmation, activity posting, status TECO/technically completed.
• Maintain documentation of change control for overhead rates and revaluation logic to support audit readiness.

Conclusion

SAP CON2 is a powerful but specific tool within the CO-OM module: actual price revaluation of production/process orders via collective processing. While it’s not broadly discussed compared to cost centre or product cost planning transactions, its role is crucial for manufacturing cost accuracy, period-end closing discipline, and financial transparency.

As a finance leader in a manufacturing environment, embedding CON2 in your process ensures your internal costing infrastructure supports your strategic objectives: margin improvement, cost control, and operational clarity.