Skip to Content

GR Cost from production for MTO

Dears

We are into Make-to-Order scenario. Material with Price control 'S'.

Sales Order is created and cost marked. Production order created, costed and released.

Now the production is complete and the GR is to be done.

At what price, the GR from the production will be posted ?

Is it at Production Standard Cost or Sales Order Standard Cost ?

Add a comment
10|10000 characters needed characters exceeded

Assigned Tags

Related questions

2 Answers

  • Best Answer
    Posted on Mar 05, 2015 at 05:35 AM

    Hi Nikki,

    If you have done costing at sale order level, then the GR should be valuated with sale order price not with standard price of the material.

    Regards,

    Mukthar

    Add a comment
    10|10000 characters needed characters exceeded

    • Hi

      Take a deep breath. Don't panic.

      If you see the variance is being posted with a difference between GR credited to the order minus GI and activity cost debited to the order.

      Remember, I said that variance CAN be calculated based on planned cost of order in ver1 for analysis,but variance will always be posted to FI what ever is calculated in ver 0. And in ver 0 you take into consideration the actual GI/activity confirmations etc and compare these values with GR value (which is of course based on SO Cost estimate in your case).

      Hope this is of little help to you.

      For more clarification can you please post your screens where you are confused i.e cost analysis of prod order.

      Rajneesh

  • Posted on Mar 05, 2015 at 03:12 PM

    Nikki

    The whole thing is little bit confusing to me...question is associated with goods movement ie GR...and it depends upon what is your cost object..is it prod order or SO..if it is prod ord then GR value will be at prod ord cost as per value posted at actual column of order (CR) and this happens when SO not a cost object. Cost showing at planning column has got no role in GR value..it is just a preliminary cost at the time of order released.

    2nd..if SO is a cost obj and prod order is created to capture manufacturing cost of SO specific where prod ord is not a cost object..where goods movement GR is valued at SO as per requirement class settings.

    So..it is based of scenario of MTO

    Kamal

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.