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Former Member
Mar 16, 2009 at 05:01 AM

Production Variances of semifinished goods in COPA



We are using Costing based COPA, which is updated at the time of billing.

The production variances are posted to COPA when the settlement of the production orders are done.

The production variances if brought within the purview of COPA report (based on sales), the plan vs actuals can be compared. However, in case of actuals, the production variances would appear only to the extent of tha particular product sold (that too, to the extent of qty produced and not qty sold)..

I have two issues:

1. Whether system can explode the BOM and bring in the production variances of semi-finished goods into the total production variances, if I drill down only on the Finished product sold. The total actual cost would include the variances of relevant SFG also. Is this possible, if so how?

2. Whether, by bringing production qty and sales qty, the proportionate prod variances be calculated (total prod var * sales qty / prod qty). This can surely be done by inserting formulae. But is this justified from business point of view?

Please help me resolving this issue..

Edited by: Swapvik on Mar 17, 2009 7:11 AM