Activity Quantity in standard cost estimate incorrect

[Former Member]

After creating a standard cost estimate I verified the activity quantity by manual calculation. The activity quantity shown in cost estimate is always more that the manually calculated amount (0.6% to 0.7%).

There are no issues with costing lot size or recipe base quantity. Is this caused by some rounding-off set up? Is this due to planning for activity quatities in hours and specifying in minutes in the routing? Where is the conversion from minutes to hours defined in the system?

Or is this due to something else?

Message was edited by:

Srinivasan Rajan

[Former Member]

My colleague told me that the difference is due to the difference in unit of measure between costing lot size specified in material master data (Each) and the base quantity in operations tab of the recipe (Cases).

Is this not taken care by the additional tab of material master record where we have defined the relation between Cases and Each?

[Former Member]

If the conversion for cases to each is defined correctly, but is a large number, say 1 case = 100 each, rounding may be occurring to cause the problem.

things to try:

1 - change the costing lot size to the same number as the case to each conversion

for above example, change the costing lot size to 100 each.

2 - you could change the pricing lot size to 100, that makes the number larger reducing the need for rounding. NOTE - EVERYONE must be aware that the standard is NOT per 1 each but per 100 (this can be confusing.)

3 - manually do the calculations to come up with the answer that SAP is calculating. answer "How did SAP get that number?" if you can calculate to the same answer as SAP, you will find where the rounding (or other issue) is occurring.

good luck.

Althea

[Former Member]

We already fixed the issue on the lines of item 1 in your note. We also took care that item 2 is not an issue.

But item 3 is a question we couldn't answer.

Thanks for the interest