I understood, the system calculates the variance based on the planned cost vs actual cost.
The planned cost calculates in the following manner:
Standard Cost of Finished Goods / Semi-Finished Goods = Planned Material Cost as per the BOM + Planned Activities units * Planned Activity Rate per Unit + Overhead Cost from cost sheet
(a) Planned Material Cost = Quantity as per BOM * Moving Average Price / standard cost as per price control in the material master.
(b) Activity Cost = Time / Units maintained under Routing * Planned activity rate maintained through KP26
(c) Overhead Cost = as per the assigned cost sheet
The actual cost calculates in the following manner, the total of the following:
(a)Material Cost :- Actual Quantity Consumption * Moving Average Price / Standard Cost as per the price control in the material master
(b)Activity Cost = actual time / units recorded during production process * Planned activity rate maintained through KP26
(c)Overhead Cost = as per the assigned cost sheet
Here, the observation is the actual activity cost consideres the planned acitivty rates that maintained through KP26
Our client requirement is , during the actual cost calculation the system should not consider the activity rates planned activity rates and need to consider the actual activity rates.
Since, we updates the planned activity rates through KP26 on yearly basis, Is there any option to maintain the actual activity rates in the system ? besides the system should consider the planned activity rates for planned cost calculation and actual activity rates for actual costing.