how to adjust previous month inventory as the std cost is incorrect

[former_member228896]

Hi All,

Costing Run executed without including Scrap , how to adjust previous month Inventory

Issue - All the components that are part of finished goods had the scrap included in BOMS. However most of these components inadvertently missed out to include on scrap and cost run was executed during the month.

Impact

We notice Inventory during month end is impacted. What is the best practice to post adjustment for incorrect Inventory.

Please share your inputs.

[former_member603259]

Hi Babu,

If you have the price calculated out of SAP and you have a list of material in your plant.

Try to execute MR21 which would correct the standard price of the material and recalculate the inventory value at plant level and post a revaluation document.

Thank you

Ravinder