COPA Product wise profitability

[former_member330651]

Hi Sapians

I have execute an order settlement and variance is successfully posted in COPA Value field VV002(Qty variance)

In product wise profitability report. System shows as follows:

Product Qty Sales value Cost @ Std price order Variance VV002

2000001 10 10000 20,000 2000

I have settled suppose 100 process orders for this product. Sales made for only 10 Qty where is remaining variance.

[former_member330651]

ok

[Former Member]

Normally variance transferred to COPA would be for the Quantity produced. Where as all the other costs in COPA are for Qty sold. Hence you need to handle it by pro-rating the variance to the Qty Sold.

I hope it helps.

[former_member330651]

pl explain pro-rate how i'll use it

[Former Member]

You might need to divide the variance with production qty X Sold Qty

[Former Member]

For your specific requirement, you need to use Actual Costing with Material Ledger. This would apply the variances to the COGS sold and the balance to the Inventory account.

Regards

Lalit Bhatt