on 03-05-2015 5:24 AM
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 ?
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
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Dear Mukthar
I don't understand the answer given by you.
I know the plan cost is for the plan quantity.
I am asking what is the purpose of Production Order Plan cost ?
You are telling the GR cost of the Production is based on the Sales Order Plan Cost.
Then there is no role for the Production order plan cost ?
Dear Rajneesh
If it is just for analysis purpose, what about the settlement of variance ?
When we settle the production order, the difference of plan and actual is settled as variance (when the price control of material is 'S'), right ?
So the point confusing to me is GR is done at Sales Order Plan Cost.
Variance is posted based on the Production Order Plan Cost.
Hoo.. it is too confusing..
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
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
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