Process order settlement

[dejoy]

Dear all,

Need suggestion on below scenario, please advise.

In process order I have defined settlement rule on material X (Moving avg price managed).material X will be produced and settled daily. Whenever I settle it on X, variance settled on X. its ok but price of X is market driven and may fluctuate daily. So I need to settle X in way that price of X will be as market price (it could be equal or below or greater than to the current MAP of X)

Example:

MAP of X 1000$

Process order variance to be settled on X is 500$ so after settlement MAP of X 1500$

CASE 1: If Market price of X 1500$ than its ok

CASE 2: If Market price of X 1200$ than what to do with   -300$.

CASE 3: If Market price of X 2000$ than what to do with +500$.

After settling I want X to represent market price in any of the above case, is it achievable?

Regards,

[Anupam1143]

HI Dee,

When a material is on' S' and the variance incurred on order are settled, it will go into price difference account as it is on Standard price control.But as in your case the Price control is V , then the variance settled are loaded in material there by increasing its MAP (as in case of V price control).

I assume you are not mentioning (VK11) by Market Price here.In either of case you need to manually change the price by MR21/ in order to revaluate you material and inventory to Market Price level every time when it changes.

Frequent Use of MR21 is not advisable.You can check when doing the GR from Production against production order for 101, if it is possible to pass the amount also for total qty as of Market price for material.

Regards,

Anupam sharma

[dejoy]

Hello Anupam,

Thank you for suggestion but i do not want to use MR21 daily.Could you please clarify,how VK11 will be useful in this scenario?and So other option remains that i control GR price in some way(like pass market price instead of MAP )

     Please suggest.

Regards,

[Anupam1143]

Hi Dee,

I suppose You are mentioning the Market price as some other price not the condition records which SD guy maintain for Customers depending upon key combinations.VK11 is not going to update the MAP it is done while carrying our pricing in SD.

Please wait let the other expert's thoughts pour in before reaching to any conclusion.

Regards,

Anupam Sharma

[dejoy]

Hello Anupam,

Yes,lets wait for more suggestions on this.Thanks for reply

Regards,