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author's profile photo Former Member
Former Member

about the variance of production order difference.

hi all

now i am practicing producting. i have closed the production order by technocially completed.and the variance (difference between standard cost and actual cost) will be settled to production order difference account through our customization.

when we are doing the delivery and billing, it is taking the standard price. but that variance is cost of this Finished product,but it is not including when we are doing delivery and billing. the variance is shows in P&L debit as a expenses.

When the SD people defien the sales price in "PR00", do they consider this variance also?

please let me know about this. can u give me the complete details.

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 26, 2009 at 02:08 PM


    I suspect based on the price control 'S' maintained for FG, the billing would happen at this standard price. Any variance in production would be settled to a separate variance account and would be available for analysis, based on which you could alter the standard price for the following period

    Thank You,

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