VARIANCE CALCULATION FOR FINISH GOODS

[former_member822036]

Hi Experts,

In one of our client there is three level bom: SKU--->SFGs+Packing materials,SFG-->SFGs((Type 2) +packing mats and SFG(Type 2)--->Raw mat+pack

He wants to get variance for FG(SKU).Can you help me out for the logic how to derive variance in this case? And his requirement is that variance should match with FBL3n entry in which GL which hits variance is entered and summation is matched.

we have already given a report in which we are driving variance Raw material and packing material wise by calculation standard and actual consumption of RM and PM ,Then calculationg GRN of SKU (101-102 Mvt type in AUFM)

then planned variance=actual GRN of SKU(101-102) -  (standard consumption)

now variance for a material(RM or PM)= Actual conump  - standard consu - planned variance proportionally divided for thant material(RM or PM)

Now how can i derive for SKU??

[Former Member]

Hi,

Looks like "Material Ledger " Requirment... If you wish to report SFG Vairance to FGs, you cannot achieve by standard Product costing setting only... You have to activate Material Ledger & run monthend addtional steps to attribute SFG order variance to FG ..

Regards

Jatin

[Former Member]

Use transaction MCRE to analyzed material variance i.e. planned vs actual. Most of the variance occurred in the process order is due to under or over consumption.  It is also possible if Process orders took more time to finished than planned one. Check out the cost analysis sheet and you will be able to figure out exactly what cause the variance. So looks at documented goods movements and cost analysis option available in the process order if variance is more after analyzing MCRE.

I hope this help to fix the variance.

Regards

Prashant