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author's profile photo Former Member
Former Member

Moving the variances at raw material level to FERT level

Dear experts,

We are having the scenario:

RM Level production Orders

SFG Level production Orders

FG Level Production Orders

When we are trying to close the orders at month end, there is no problem in settlement, but when we see the COPA report variance amount is appearing under the same material for which we have settled the order.

Expectation is, as we are used the RM for SFG and SFG for FG, the RM variance amount should be shown under SFG & SFG variance should be shown under Finished product.

Is it possible..............?

Thank you...

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3 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Dec 15, 2014 at 06:05 AM

    Hi,

    The answer to your requirement is Material Ledger.

    Regards,

    Szymon

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  • Posted on Dec 14, 2014 at 03:14 AM

    Hi

    I think you have not defined input variances like input price/usage variances in variance calculation at order level.

    Please check variance calculation settings in SPRO

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 16, 2014 at 03:30 PM

    Hi Surya,

    The following is workaround solution for the same without ML

    1. Create the production variance GL account as cost element

    2. Assign the default cost center to production variance GL account in OKB9

    3. De activate the variance to costing based PA in settlement profile.

    By doing the above steps, Production variance is posted to cost centers instead of directly to COPA during the settlement.

    4.Get the production variance for raw materials and SFG and FG from product costing reports.

    5.Distribute the production variance from cost center to COPA (Respective product levels) through COPA assessment cycle.

    Then you would be able to see the variance as per your distribution to different product levels in COPA reports.

    But as per your requirement ML is best option instead of doing all the above steps.

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