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Former Member
Nov 12, 2009 at 06:03 AM

Price difference-when process change

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Hi,

Presently in costing sheet there are two continuous processes, both are considered as SFG (semi finished goods). The SFG 1 material in first process is the BOM part of the second process SFG 3 material. Both process has different cost centres, overheads and cost elements.

Now the second process of SFG material takes more than 9 months. So want to show this WIP under maturation stock, as separate stock under new SFG 2 material, with some value addition (considered as activity). This new process related SFG 2 material BOM will contains the first process SFG 1 material. And this new SFG 2 material code will be the part of BOM of the last process SFG 3 material.

Now there are 2 issues we are facing.

1st query:

In quality server after transporting the request from Development, Price difference account is generated while production of the 3rd Process SFG 3 material.

Production made for 1000 AL Qty (Base Qty of BOM 1000 AL and Costing lot size 1000 AL ) and in the entry we are getting the Price difference entry as shown below.

Dr. Inventory SFG3 - 105,897.43

Cr. Incr/Decr/Cons SFG 3 - 105,900.00

Cr. Price difference - 2.57

Cr. Inventory SFG2 - 94,550.00

Dr. Incr/Decr/Cons SFG2 - 94,550.00

Standard cost of SFG 3 for 1000 AL is 105,897.43 and Standard cost of SFG 2 for 1000 AL is 94,550.00

May i know why the price difference account is picked up while doing the production of existing material SFG 3, when there is no such difference in development server. And no Price difference account in Quality server before introducing the new process?

Regards

Vinu.