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Former Member
Jul 03, 2009 at 02:25 PM

Variant Config Material's Production Order Actual Cost coming too high.

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Hi All,

We have a production order for a VC material. The actual cost for the material consumed (GI) is coming correctly ..ex. INR 13,000.00. The Activity + Overhead cost is coming around INR 600. But when GR against production order is done the actual cost for the finished good is coming too high..ex. INR 400,000.00.

We are not able to find from where this extra cost is getting picked up for finished good. The actual cost should be around INR 13000-14000. The variance of about INR 2000 is acceptable but variance of above INR 300,000 is not acceptable.

We have GI (mov type 261) documents that costs around INR 13000 and one GR (mov type 101) document that costs around INR 400,000.00.

Can you pls guide on finding what could be the reason why this extra cost is being picked up? Also what would go into pricing of a VC material?

Many thanks in advance.

Rakesh