Skip to Content

SAP B1 - Production Order Extremely High Variance

Oct 05, 2017 at 12:09 PM


avatar image

Dear Experts,

I would like to seek your help about one of my customers that uses Production Module in SAP B1. Several of their Production Orders have very high production variance upon posting of Receipt from Production. Please see example below:

Actual component cost: 6,523,833.11

Additional cost: 3,767,286.39

Actual product cost: 1,952,306,011.16

Production variance: 1,942,014,891.65

Below are the details when I checked the transactions:

- The valuation method of all inventory items is Moving Average.

- Item cost of RM during the production period is normal. No fluctuation.

- The Planned Qty is the same with Issued Qty.

- Completed Qty of FG was changed from 582 to 912 (which will not result to a particularly high variance when I computed).

- Issue method is Manual, but I found that the creation date of Receipt from Production was earlier than the Issue to Production. (I tested this scenario. Resulted to 25% variance which is fine since I increased the completed Qty).

The client uses SBO v. 8.82.

Do you have any ideas what other factors which may trigger a production variance aside from the item's current cost and changes in quantity? Or is it a bug?

Thank you in advance for your help.

10 |10000 characters needed characters left characters exceeded
* Please Login or Register to Answer, Follow or Comment.

0 Answers