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Apr 17, 2014 at 01:26 PM

Variance effect on Stock of FG


Dear All,

In our client,we have implemented Standard Price for FG and SFG Materials and as you all know that in the case of SP ,the variance will be posted to PRD Account.

But the client requirement is that the variance is to be loaded on the stock (to the extent of stock availability @ the month end) and remain variance to be posted to Variance GL account,

We have proposed Moving Average price (MAP) in the place of Standard price (SP) to meet the requirement and tested the in the quality by changing the price of FG and SFG Materials from SP to MAP.

At the time of settlement of process orders ,we find that wherever single order is created for the FG /SFG material,system loading the variance on the stock and remaining is posted to Price GL account as per the expectation,but in the cases of multiple orders of FG and SFG Materials ,system loading the variance on the stcock,which is not as per expectation and loading huge amount of variance on the stock available resulting in MAP of FG material is increased enormously.

Please through some light on this and help me that what could be the reason for loading of huge variance on the stock in the case of multiple process orders of FG.