Hi Selva.
Is the transaction CO78 used for production order closure?
NO, this tcode is for archiving and deletion flag set (part of SARA)
who will be responsible for production order closure (PP team or CO team)?
Depends on your specific bussines scenario. In some companies, in the PP area there are ppl responsible for costing (must understand the costing flow, accounts, that is COGS, COGM, cost, P&L) .. i think you understand the concept. In other companies, this stuff is responsible of Financial or a specific costing area.
Its a good idea separete @tcodes with busseness roles. The decision must come from the bussines.
"Normally for any firm to settle an order, it takes 3 days of the next period". Can you please explain?
If you do full cost absortion, you must calculate actual activity cost. In order to do that, you must wait in order HR people post to cost centers, also wait in order to Invoice receipts, do Assesments and Distributions in Controlling. The, you can run the Settlement of the PP Order. But again, it depends on your bussiness scenario, and you must define the flow with the CO boy.
I have created the production order with 10 quantity. Out of which i have completed 7 quantity today & today is the end of this period. And i want to complete the remaining 3 quantity during next period. So i need to set the production order status "TECO" today since today is the end of this period. If i do not set the TECO status today (assume today is period end), will it have any financial impact?
If you want to do the GR of this 3 units in the next period, you must work with WIP. WIP in single words is clear the #Money that is in the PP Order (Consumption account) but still dont arrive to inventory account. WIP is a temporary acount in order to show this money in the Balance of this period. If you dont run WIP, credits <> debits so FI will not be conciliated.
In the standard system, WIP is not trigger if you set TECO, so you must not set TECO in the 1st month, you must do in the 2nd one i mean in the period you do gr of the 3 units. Indeed WIP is more CO consultant responsability and he/she must understand the flow and the customizing. About Financial impact, indeed all this stuff is CO and ofcourse have financial impact.
Wish this concepts help you a bit.
Arturo.