on 01-26-2016 2:36 PM
Dear Guru's,
We are working according to a toll manufacturing plant principle.
The owner of the goods, delivers some components on the other hand this company is selling the fininshed product. The semi finished product is managed and valuated in the toll manufacturer plant, without the components of the selling plant. However the finished product is taken into stock in the sellig plant and includes also a price difference due to this different valuation.
Is there a way to exclude this price change in the material ledger logic:
example:
Plant A : selling plant is purhasing component A for 1 Euro
plant A : selling plant sells finished product D at 4 Euro (including the 1 euro of component)
in plant plant the material A exists also but is not the same value, since the value of 1 euro is eliminated
During the actual costing this difference of 1 euro is reflected in the ending stock of plant A, which results in a lower stock value, however this is due to the fact that we are excluding the 1 Euro in the valuation of the producing plant.
How can we eliminate this variance?
Best regards,
Wouter Vanhoutte
Kamal,
Product Z is 100 USD worth in plant 1 / company code A
Product Z is 200 USD worth in plant 2 / company code B
Reason : Plant 1 is a toll manufacturing plants an use components of plant 1 and plant 2 The items of plant 2 aren't included in the valuation of the material in plant 1. So the valuation in plant 1 is always lower than the valuation in plant 2.
During goods receipt of the fiished product in plant 2, the difference of the standard price isn't taken into account. Which leads to great inconsistency between the actual cost and the standard cost. The settlement of the product order has an impact, but logicwise this is minor.
Hope this clarifies.
Wouter Vanhoutte
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Hi
Not very clear...can you give detail of your process and what exactly you want?
Kamal
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Dear Sir,
Say Plant A producing SFG1 and purchasing SFG2 at a Price of 1EURO,Then SFG1 and SFG2 gives finshed product FG (SFG1+SFG2=FG).
Make a BOM CS01 and Routing in CA01. Then transaction will be in change of stock account credit and consumption account debit instead of price difference account.
This will help inventory valuation of 1EURO.
If you are MAP it will be perfectly fine but if your using S ,then if there is any difference in Purchase order price and material master price (1 EURO) that again will come into price difference account
saikat
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Saikat,
We work with a special procurement key, so that the finished good is received in the selling plant. In the producing plant there exist a BOM and routing. So I don't see the need to create a BOM and routing? Both of the master data exist already in the producing plant.
It is a the time of the goods receipt in the selling plant, that the system doesn't go through the costing logic
Best regards,
Wouter
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